
Rook ■ \/<r^A 



PRESENTED BY 



\9.--- 



[third STEREOTYrK EDITION,] 

A 

TREATISE 

ON 

CIVIL POLITY 

AND 

POLITICAL ECONOMY: 

WITH 

AN APPENDIX, 

CONTAINING 

A BRIEF ACCOUNT OF THE POWERS, DUTIES, AND 

SALARIES, OF NATIONAL, STATE, COUNTY 

AND TOWN OFFICERS. 

FOR THE USE OF SCHOOLS AND ACADEMIES. 




BY MARCIUS WILLSOJ^. 

NEW YORK: 
WILLIAM K. CORNWELL, 

95 BEAVER. STREET. 

1845. 






Entered according to act of Congress, in the year 18S8, bj 
J. Orville Taylor, in the Clerk's Office of the District Court 
of the United States for the Southern District of New -York. 



Gift 
Judge and Mrs. Isaac R.HHt 
July 3, 1933 



Stereotypes 


BY Smith 


AND Wright, 






216 William St. 


N. 


Y. 


& Seed Pri 










Piercy 


nters, 










9 Spruce 


Street. 










. .A 





r<^ 



PREFACE. 



TiiE object of the writer in compiling the following work, has 
been to prepare a book that may be read with profit by all, but 
principally to afford a useful and long-needed text-book for high 
schools and academies. The subjects here treated have too 
long been considered beyond the pale of a common education, 
and as belonging exclusively to the pursuits of literary and pro- 
fessional men ; and it is but lately that they have been intro 
duced into a few of our colleges and higher seminaries of learn- 
ing. 

Why subjects of such paramount importance to American cit- 
izens — subjects which explain the theory, principles, and practi- 
cal operation of our republican institutions — and the nature, ori- 
gin, and principles of national wealth, should have been so long 
neglected by the great mass of those who are so obviously inter- 
ested in an intimate acquaintance with them, can be explained 
only by the supposition that they have reflected too little upon 
the objects of these studies, and consequently have remained un- 
aware of their importance. Otherwise, their real utility would 
long since have placed them among the first studies in a course 
of popular education. 

The most important knowledge for an individual to acquire, is 
such as will best enable him honorably and usefully to fill the 
station which by birlh or fortune he is destined to occupy. — 
Having adopted a new system of government, and assumed a new 
station in the political world, if our republican institutions are 
v< >rthy of being preserved by us, and transmitted unimpaired to 



IV PREFACE. 

posterity, we should, as a people, strive to acquire that know- 
ledge which best befits our station, that we may honorably and 
faithfully fulfil those duties which devolve upon us. 

As our government depends directly upon the people for its 
support and preservation, it is idle to suppose that they will 
feel a very ardent attachment for, or prove very able supporters 
of a system of whose principles they are ignorant ; but while 
their opinions, although correct, are founded on ignorance, they 
will ever be liable to be led astray by the wild theories and idle 
epeculations so prevalent in a country where public opinion is the 
ultimate tribunal of appeal. There is scarcely a theory, how- 
ever extravagant or absurd, that will not find supporters either 
among the ignorant or the selfish and designing ; and if. public 
opinion be unenlightened, there is no antidote beyond it that can 
save us from the evils of any destructive, disorganizing, popular 
delusion. 

Believing that our form of government is the best ever adopted 
for an enlightened people, and that if they understand its princi- 
pies they will value it too highly to desire a change to any of the 
systems which have preceded it, or to any hitherto untried ex- 
periment, there seems to be nothing wanting to insure its perpe- 
tuity but a more general and intimate knowledge of its princi- 
ples and practical operation. The importance and necessity of 
such knowledge are not confined to any one class or portion of 
community, but extend to every American citizen, whatever his 
calling or profession. 

To afford such instruction, that portion of the following work 
which treats of Political Knowledge and Constitutional Law has 
been written. It is designed to give a concise but comprehen- 
sive exposition of the elementary principles of those sciences ; 
and it is believed to be written in so plain and familiar a manner, 
that any one, who will, can understand it. 

Several commentaries and expositions of the Constitution have 
already appeared, but most of them have been designed for the 
reading of the higher classes in colleges, or for professional men, 
and are not well adapted to the use of schools. Those writings 



PREFACEi»' V 

to which the author is principally indebted for the materials of 
that portion of the following work which treats of the Constitu. 
tion, are the Commentaries of Chancellor Kent and Chief Justice 
Story, Gordon's Digest of the Laws of the United States, Bay- 
ard's andDuer's Expositions of the Constitution, and Mansfield's 
Political Grammar. 

The author claims little originality for this portion of his 
work, other than for the manner in which the subject is illus- 
trated. His design has been to compile a work that will be use- 
ful, and in following out his plan, he has not hesitated to avail 
himself of the aid afforded by the writings of others. 

The study of Political Economy is beginning to receive that 
attention from the friends of popular education which its impor- 
tance demands. It is now introduced into most of our colleges 
and schools of a higher order, but, as yet, most of the text-books 
used are too voluminous to be generally adopted in high schools 
and academies. To supply the want of such a work, the "Ele- 
ments OF Political Economy" have been written, in which the 
principles of that science are familiarly explained. 
• In the compilation of this portion of his work, the author has 
principally consulted the writings of Adam Smith, Mr. Say, and 
the late excellent work of President Wayland. The first twenty- 
three pages, ending with " Protective Duties," are little more 
than an abridgment of the first one hundred and forty pages of 
Wayland. It has been the aim of the writer to avoid all repeti- 
tion, and yet to illustrate his subject in as concise and simple a 
manner as possible. The remainder of the work, both in man- 
ner and matter, has more claim to originality ; but it is believed 
that the principles attempted to be established and illustrated, 
are the same with those advanced by the principal political econo- 
mists of the present day. 

h\ Most of those principles, which are now considered erroneous, 
but which present some claim to our attention on account of 
their adoption by the earlier writers on Political Economy, have 
been adverted to chiefly in the notes which accompany this work. 
In a work so limited as the present, which professes simply to 

1» 



Vl PREFACE. 

inetiiodize and illustrate obvious and first principles, it is thought 
the writer's time would be mis-spent in combating erroneous 
theories, which wUl of themselves sink into oblivion as the first 
principles of Political Economy become more generally and 
more perfectly understood. 

In relation to the many erroneous theories advanced by unin- 
formed political economists, I cannot forbear to quote the words 
of Mr. Say. " With respect to the wild or antiquated theories 
so often produced or reproduced by authors who possess neither 
sufiiciently extensive nor well digested information to entitle 
them to form a sound judgment, the most effectual method of re- 
futing them is to display the true doctrines of the science with 
still greater clearness, and to leave to time the care of dissemi- 
nating them. We otherwise should be involved in interminable 
controversies, affording no instruction to the enlightened part of 
society, and inducing the uninformed to believe that nothing is 
Busceptible of proof, in as much as every thing is made the sub-" 
ject of argument and disputation." 

In the hope that this work may be found useful to the public 
—that it ^ay serve to increase the intelligence and excite the 
patriotism of his fellow-citizens, and prove an efficient auxiliary 
in the cause of common education, the author respectfully sub- 
mits it to the judgment of the public. 

PougTikeepsie, January, 1839. 



CONTENTS 

AND 

PLAN OF THE WORK. 
BOOK FIRST. 

CIVIL POLITY, 

CONTAINING ELEMENTS OF POLITICAL KNOWLEDGE 
AND CONSTITUTIONAL LAW. 



PART FIRST. 

Elements of Political Knowledge, 

Natural Liberty 

Civil Liberty . 

Political Liberty 

Civil Society 

Law 

Sovereignty 

Government 

Despotism 

Aristocracy 

Democracy 

Limited Monarchy 

United States Government 

Constitution 

Common Law . , 

Statute Law , , 

Corporations . , 



21 
22 
23 

lb 
24 
26 
27 

ih 
28 
30 
31 
33 
36 
39 
40 
41 



8 



CONTENTS. 



Charter 
Parties 
/*actions 



41 
ib 



PART SECOND. 
Constitutional Law. 



Origin of the Constitution of the United States 
Preamble ..... 

Article L — Of the Legislature. 

Sec. I.— Legislative Power 



Of the Organization of the Government 
Of the constituent parts of the Legislature 

H.—Electors of Representatives . 
Qualifications of Representatives 
Ratio of Representation 
Vacancies in the Representation from a State 
Mode of electing Representatives 
OfScers of the House of Representatives 
Power and Mode of Impeachment 
III.— Composition of the Senate 

Qualifications for Senators , 
President and other ofiicers of the Senate 
Power to try Impeachments . 
Judgment upon Impeachments 

IV.— Elections for Senators and Representatives 

Assembling of Congress 
V — ^The keeping of a Journal by each House 
Expunging of the Journal 
Adjourrmients of either House , 

VI.— Members privileged irom Arrest 

Treason, Felony, and Breach of the Peace 



43 

46 



46 
ib 
ib 
ib 
47 
48 
ib 
50 
ib 
51 
ib 
52 
54 
55 
ib 
ib 
56 
ib 
57 
ik 
5ij 
ib 
ih 



CONTENTS. 



VII. — Biils for raising Revenue 
Mode of passing Laws 
Executive Veto 



59 
60 
61 



Of the Powers of Congress. 
VIII.— To impose Taxes, Duties, Imposts, and Ex 



cises . . . i * 


63 


To borrow Money 


65 


To regulate Commerce . . 


ib 


To establisli the Mode of Naturalization 


67 


Protective Duties 


ib 


Naturalization . 


ib 


Bankruptcy . . • 


ib 


To coin Money, &c. 


68 


To establish Post-offices, and Post-roads 


69 


Internal Improvements . 


ib 


Patent and Copy rights . 


71 


To constitute Judicial Tribunals 


72 


To punish Piracy 


ib 


Piracies — High Seas 


ib 


To declare War, support Armies, &c. 


72 


Letters of Marque and Reprisal 


73 


Navy — Standing Armies 


74 


Powers of Congress over Military Affairs 


; ib 


Powers of the President as Commander-in 




chief .... 


75 


Legislation over ceded Places 


76 


The question of a National Bank 


77 


Of Restrictions upon the Powers of Congre 


ss. 


IX. — Importation of Slaves . o 


79 


Writ of Habeas Corpus — Bills Oi Attaiader 


80 


Ex post facto Laws . 


ih 


Capitation Taxes . . , 


81 


Duties on Exports , * , 


ib 



10 CONTENTS. 

Commercial Regulations . * ' . 82 

The Public Moneys . . . . i6 

Titles of Nobility .... 83 

Of Restrictions upon the Powers of the States. 

X.— Bills of Credit .... 84 

Obligation of Contracts ... ib 

Tonnage Duties . . ^ . . 85 



Article II. — Of the Executive. 

Sec. I. — Executive . . . 

Electors of President and Vice-President 
Manner of Election . 
Qualifications for President . 
II. — His Powers and Duties 

Public Ministers — Ambassadors — Consuls 
III. — President's Messages 



86 
87 
88 
89 
92 
93 
96 



Article III. — Of the Judiciary. 

Sec. I. — Organization of the Courts of the United 

States ..... 97 

II.— Extent of Judicial Power ... 99 

A Case^ — Equity .... ib 

Admiralty and Maritime Jurisdiction . ib 

Original and Appellate Jurisdiction . . 101 

Trials by Jury .... 102 

III. — Treason — Conviction and Punishment of . 103 

Article IV.- — Miscellaneous. 

Sec. I. — Credit given to Domestic Judgments— to fo- 
reign Judgments . . . ,104 

II. — Privileges of Citizens in diffeVent States , 105 

Fugitive Slaves — Delivery of Criminals , ib 

22 - ^ 



CONTENTS. 

III. — ^Admission of new States 

Territorial Regulations 
IV.— Protection of the States 



11 

106 
107 
ih 



1 Article V. — Of Amendments. 

Amendments, how made 

Ijimitations to the power of making Amendments 



108 
ib 



, Article VI. 

Debts contracted before the adoption of the Constitution 109 

Laws of the Land . . . . « «6 

Oath required of Public Officers — Religious Test . 110 



Article VII. 
Of the Ratification of the Constitution 

Amendments . . . 



Ill 
112 



BOOK SECOND. 

ELEMENTS OF POLITICAL ECONOMY. 





Introdtwtion. 


\ 


Political Economy- 


« 1 « 


121 


Wealth . . 




• • « 


122 


Value intrinsic . . 




» i • ' • 


ih 


Value exchangeable 




• • • 1 


123 


Division of the Subject 




« L-; . ;■'•: . 


126 



12 



CONTENTS. 



PART FIRST. 

Of the Production of Wealth, 

Section I. — Of Capital. 

The Nature of Capital c . 

The Forms and Changes of Capital 
Productive and Unproductive Capital . 
Fixed and Circulating Capital 



128 
129 
130 
131 



Section II. — Of Industry. 

I. The Object of Industry . . , . 132 
Changes effected by Industry . . . 133 
The different Forms of Industry , . . 134 
The Products of the different Forms of Industry . 135 

II. Of the different Modes by which the Productiveness 
of Human Industry may be increaoed ; and, first, by 

the Use of Natural Agents « . ,137 

Natural Agents — ^animate and inanimate . « 138 

Their Uses and Importance . . . . i6 

III. Of the manner in which Productiveness may be 
increased by Division of Labor . . , 139 

Division of Labor among the different Departments of 

Industry , , , . 140 

IVv Limitations to the Division of Labor , v 142 

From the Nature of the Process . , . ih 

Amount of Capital , , . . » 143 

Extent of the Demand .... 144 

Of the Natural Divisions of Labor , , . 145 

V» Effects of the increased Productiveness of Human 

Industry .,..,. 145 

Labor-saving Machinery . "» » . ih 

Effect upon both Consumers and Producers , • 146 



CONTENTS. 



13 



Section III. — Of the Principles wldch govern the application 

of Labor to Capital. 

Labor and Capital united 

I. Freedom of Labor and Capital necessary to Produc 
lion ...... 

Effects of an Insecurity of Property upon Industry 
Monopolies ..... 

II. The greater the ratio of Capital to Labor, the 
greater will be the Wages of Labor, and the greater 
will be the stimulus to Industry 

Advantages of accumulations of Capital 

III. The Productiveness of Industry and Capital will 
be increased in proportion to the Intellectual Im 
provement of a People 

rV. Of Protective Duties . . . - 



V. Of Bounties 



149 

149 
150 
L51 



153 
154 



155 
156 

168 



PART SECOND. 



Of the Distribution of Wealth. 

The Prirrciples which regulate the Division of Value 

among the Producers 
The Wages of different kinds of Labor 
Of simple Labor .... 

Of educated Labor . . . 

Of the price paid for the use of Capital 
Causes which occasion Fluctuations in the Rate of In 

rest . . . ... 

Rent ...... 

Of legal Interest .... 

2 



172 
174 
175 
176 

177 

18D 
ih 

182 



14 



CONTENTS* 



PART THIRD. 



Of the Exchange of Wealth, 

The diffeient kinds of Exchange . . . 187 

Section I. — Of Barter in General^ or Exchange in Kind. 

I. The Necessity of Exchanges 
Of the Principles which give rise to Exchange 

II. Barter in General, or Exchange in Kind . . 192 



168 
189 



Section II.~-0/ Exchange by means of a Metallic Currency 

I. Of the Qualities necessary to that which constitutes 

the Circulating Medium .... 198 

II. Of the Amount of Money necessary to effect the 
Exchanges of a Community . . . :7: 204 

Exchanges between Nations . . ^^' . . 205 

Effect of a Productive Season upon Exchanges . 208 

of an Unproductive Season . , . 209 

Of the abundance and scarcity of Money , . 211 

III. Of Banks of Deposite and Exchange . . 212 
The Evils which they remedy » . . 213 
Bills of Exchange ..... 219 



Section III. Of Exchange by means of a Paper Currency. 

I. Banks of Discount and Loan ; and of Circulation, or 

Issue Banks, in this Country , . . 222 

Their Nature and Mode of Operation . . 223 



11. Of the Sources of the Profits of Banks 

ni. Ofthe Utility of Banks . 

As Institutions of Deposit and Exchange 

As Institutions of Discount and Loan 



228 

230 
231 

232 



CONTENTS. 



15 



rV. Of the Disadvantages of Banks '. 
Their liability to Forgery 

to Fraud and Fluctuation 

Of the New-York Safety Fund System 



236 

ib 

237 

242 



PART FOURTH. 

Of the Consumption of Wealth, 

I. Of the Nature and Different Kinds of Consumption 
Productive and Unproductive Consumption 
Consumption for the Increase of Value 
for the Gratification of Desire 

II. Of Public Expenditure • Hi" • 
Effects of Public Profusion 



251 

252 

253 

ih 

254 
255 



AN APPENDIX, 

CONTAINING ' 

A BRIEF ACCOUNT OF THE POWERS, DUTIES, AND 

SALARIES, OF NATIONAL, STATE, COUNTY> 

AND TOWN OFFICERS. 



CHAPTER I. 




OF NATIONAL OFFICERS. 




Section I. — Of the Executive Department. 




I. Of the Department of State , „ i 


260 


IL Of the Treasury Department 


ib 


III. Of the War Department 


261 


IV. Of the Navy Department 


262 


i V. Of the Post-office Department . 


ib 


VI. Of the Mint Department 


264 


Section II. — Of the Legislative Department. 




I. The Officers of Congress 


265 


II. Their Committees • . 


ib 


III. Their Rules • . . . . 

d TTT /^T jT. T..7- "T Tr» j™ J 


266 



Section III. — Of the Judicial Department. 

The Supreme Court — The Circuit Courts — The Dis, 

trict Courts ...... 268 

Of the Officers of the Courts, 
Attorneys— Clerks— Marshals — Reporters . . 268 



CONTEJSTS. 17 



CHAPTER 11. 

OF THE STATE, COUNTY, AND TOWN OFFICERS 
OF THE STATE OF NEW-YORK. 

Section I. — Of State Officers. 

I. Of Legislative Officers .... 270 

Senators — ^Members of Assembly 

II. Of Executive Officers .... 270 

Of the Governor — Lieutenant-Governor, Secre- 
tary of State — Comptroller — Treasurer — Attor- 
ney-General — S urveyor-Goneral — S tate Printer 
—Governor's Private Secretary and Door-keeper 
of the Executive Chamber — ^Administrative Of- 
ficers. 

in. Of the Judiciary ..... 278 

Of the Court for the Trial of Impeachments and 
the Correction of Errors — Court of Chancery — 
The Supreme Court — The Circuit Courts — 
Courts of Oyer and Terminer — Courts of Coiru 
mon Pleas — Courts of General Sessions — Courts 
of Special Sessions — Courts of Justices of the 
Peace. 

Section II.— 0/ County Officers. . 282 

Of the Sheriff— ^Coroners — District Attorney — Judges 
of the County Courts — County Clerk — Surrogate — 
Superintendents of the Poor — County Treasurer- 
Board of Supervisors — Commissioners of Loans- 
County Sealer — Inspectors of Commodities. 

2» 



18 CONTENTS. 

Section III. — Of Town Officers. T 

OF the Supervisor — Town Clerk — Assessors — Justices 
of the Peace — Collector — Overseers of the Poor — 
Commissioners of the Highways — Commissioners of 
Common Schools — Inspectors of Common Schools- 
Constables — ^Town Sealer — Overseers of Highways 
—Pound Masters — Fence- Viewers— Commissioners 
©f ExciEo— Board of Auditors of Town Accounts— 
Commissioners of Dec^ls 



^ 



BOOK I. 
CIVIL POLITY; 



CONTAINING 



ELEMENTS 



OP 



POLITICAL KNOWLEDGE 



AND 



CONSTITUTIONAL LAW. 



A 



PART FIRST. 



ELEMENTS 

OF 

POLITICAL KNOWLEDGE 



Natural Liberty — is freedom from all human re» 
straint. It is freedom to act as one's will and pas- 
sions prompt him, restrained only by those laws of 
our nature which the Deity has imposed upon us. 
This kind of liberty can exist only in a state of soli- 
tude, and never under any form of government : the 
very idea of a government precludes it. 

Where men have the liberty of doing whatever 
<^their passions urge them- to attempt, or their strength 
enables them to effect, their very liberty becomes sav- 
age ferocity : it is the liberty of a tiger, and not that 
of a man. Unbridled liberty is the worst of tyranny ; 
and where there is no law, there can be no freedom. 

If men were never actuated by wrong motives, no 
codes of jurisprudence would be necessary to keep 
them in the path of duty ; but the design of a wise 



What is Natural Liberty 1 

Where, and where only, can it exist 1 

What would natural liberty become if unrestrained 1 



22 ELEMENTS OP 

government is to restrain the evil and licentious, and 
to protect the innocent and virtuous from wrong and 
injustice. 

Hence arises the necessity of laws which abridge 
the natural liberty of man where its exercise would 
infiinge upon the rights of others. 

One man has no right to that unrestrained freedom 
which seeks his own interest exclusively, and disre- 
gards the welfare of his fellow men. 

Were men wise enough to seek their true interest, 
it would never be promoted by the violation of right 
and duty ; for the laws of the Creator are such, that 
permanent individual good never clashes with the gen- 
eral happiness of all. 

From the restrictions placed by a wise government 
upon the natural liberty of man, there arises a more 
secure and desirable state of freedom, called civil 
liberty. 

Civil Liberty — is the being restrained hy no law hut 
what conduces to the public welfare. After a govern- 
ment has been established, those rights which are re- 
tained by the people are the residuum of natural liber- 
ty, which is not required by the laws of society to be 
sacrificed to public convenience ; or they may be said 
to be those civil privileges which society engages to 
provide in place of the- natural liberties given up by 
individuals. 



Whence arises the necessity of governmont andlaws 1 
What is tliat state of freedom called, which arises from tlie restrictions pla- 
ced upon natural liberty 1 
What is Civil Liberty ? 



POLITICAL KNOWLEDGE. 23 

Laws which augment the civil liberty of a people, 
must often necessarily restrain the personal liberty of 
individuals. 

Although a person in the freest Republic in the 
world may be imprisoned for a crime, his civil liberty 
is not invaded, if his confinement is the result of a 
beneficial public law ; for, according to the definition 
of civil liberty, the law by which his crime is punished 
conduces to the public welfare. 

Political Liberty — is that degree of security with 
which any particular form of goverment guarantees the 
enjoyment of civil liberty. Civil liberty may exist in 
perfection under an absolute monarch, who has the 
will and the wisdom to make beneficial laws, and the 
power to execute them. But under such a government 
there is no security for the continuance of civil liberty ; 
consequently political liberty is there unknown. 

Civil Society — is the union of a multitude of people 
who agree to live in subjection to certain laws which 
either the people themselves form, or which are left to 
the regulation of their rulers. Nothing can be ad- 
vanced with certainty respecting the origin of civil 
societies. 



What are the rights retained by tlie people 1 

How may the civil liberty of a people be increased, while the personal lib- 
erty of individuals is restrained 1 

What is Political Liberty 1 

How may civil liberty exist under an absolute monarch, and why not polit- 
ical liberty 1 

What is Civil Society 1 

To what has the origui of civil societies been attributed 1 



24 ELEMENTS OF 

Their origin has been attributed — 

First — To paternal authority — that authority which 
a father exercises over his family- — a patriarch over 
his direct descendants. The band, thus united by the 
ties of kindred, and by a similarity of views and inte- 
rests, would naturally be kept together after the death 
of the patriarch, and his authority would be transferred 
, to some one of his descendants. 

Second — Civil society is supposed by some to have 
originated in that fear and diffidence which mankind 
had of one another, which induced them to unite toge- 
ther in order to shelter themselves from the evils they 
apprehended. 

Third — That ambition in the more powerful was the 
cause of reducing the weaker to subjection ; thus form- 
ing the germs of sovereignty and empire. 

But the varieties of character among the rudest peo- 
ple, will not permit us to refer the origin of all gov- 
ernments to a general and uniform principle. It is 
more natural to suppose that different circumstances 
gave rise to different states. 

Law — is a mode of existence, or a state of being. It 
is not a rule of action only, for inertia is a law of mat- 
ter. The term law, however, embraces the rules of all 
action, and comprehends alike the rules by which the 
heavenly bodies move, by which nations are governed 
and plants grow. 



First— Second— Third— What is the most natural supposition relating to 
their origin 1 
What is Law? 
What is law in its most general signification 1 



POLITICAL KNOWLEDGE. 25 

Law, in a political sense, however, signifies a rule of 
human action. In a particular state, it is a rule pre- 
scribed by the supreme power in the State, the design 
of which should be to declare and enforce the observ- 
ance of what is right, and to forbid and punish what is 
wrong. 

Law may be divided into four kinds — -the Law of 
Nature, Revealed Law, the Laws of Nations, and Muni- 
cipal Law. 

The Law of Nature — is the will of the Deity as 
gathered from his works. 

Revealed Law — is the will of the Deity as expressed 
by himself in divine revelation. 

The former is what, by the assistance of reason, we 
imagine to be the will of the Deity. The latter is 
what the Deity has expressly declared to be his will. 

The Laws of Nations — are those rules which de- 
line the rights, and prescribe the duties of nations, in 
their mutual intercourse with each other. 

Municipal Law — is a rule of civil conduct prescribed 
by the supreme power in a state. Municipal Laws are 
civil or internal, as distinguished from national or ex- 
ternal laws. The laws relative to the descent of pro- 
perty are municipal laws ; but laws relative to com- 



What is the signification of the term wiieu used iu a political sense t 

What is it in a particular state ? 

How may law be di\ided 1 

What is the Law of Nature I 

Revealed Law 1 

The Laws of Nations 1 

Municipal Law 7 

3 



26 ELEMENTS OF 

morce, to war, the army and navy, are external and 
national. 

Sovereignty — is the highest power inan independent 
state or community, and is incompatible with the natu» 
ral hberty of man. But a wise sovereignty, whether 
its power be vested in one man, in a select body of men, 
or in the whole people, does not subvert civil liberty, 
but, on the contrary, contributes to strengthen and ce» 
ment it. 

For a State or Nation to be sovereign, it must govern 
itself i without any dependence upon another power. It 
must have no superiors. But when a community, cityj 
or State forms a part of another community or State, 
and is represented in foreign countries by that commu- 
nity or State of which it is a part, then it is not sove- 
reign. 

With respect to the United States, the individual 
States are not sovereign powers. The General 
Government of the United States is sovereign in a na^ 
tional capacity, and that of the States in a municipal 
capacity. The former can declare war, make peace, 
enter into treaties, regulate commerce, coin money, &c. 
And these are national objectso. 

The States have reserved to themselves the power to 
make municipal laws — those which directly concern 



"V^Tiat is Sovereignty ? 

With which is sovereignty incompatible, natural or civil liberty ? 

What is necessary in order for a State to be sovereign 1 

In the United States are the individual States sovereign powers 1 

In what capacity is the general government sovereign 1 

la what may the States be considered sovereign 1 



POLITICAL KNOWLEDGE. 27 

the States alone — such as those which relate to State 
taxation, descent of property, chartered companies, po- 
lice regulations, &c. The States are, therefore, sove- 
reign in their municipal capacity only. 

But the government of the United States is superior 
to and sovereign over the governments of the States in 
those cases in which they are constitutionally brought 
into collision. Finally, the people of the United States, 
are one nation, and do not constitute many separate 
sovereignties united by a league. 

Government — is the whole body of constituted au- 
thority. From the very origin of society, one portion 
of the people has exercised authority over the rest. 
The authority thus exercised is called the. government f 
and it derives its just powers from the consent of the 
governed. 

There are four principal forms of government, viz : 
Despotism, Limited Monarchy, Aristocracy, and De- 
mocracy, or Republic. 

• A Despotism — is that form of government in which 
a single individual, without any law, governs accord- 
ing to his own will and caprice. An example of this 
kind of goverment may be found in Turkey, where the 
Sultan exercises all the powers of sovereignty, with re- 
spect to the general administration of public affairs ; 



Wliich is superior, the General or the State governments 7 

What is Government 1 

How many, and what are the principal forms of government 1 

What is a Despotism 1 

Wliere may an example of this kind of goveniment be found ? 

By what is the sovereigi-.ty of the Sultan limited l 



28 ELEMENTS OF 

but even there he is limited by certain customs and 
rules, as it respects private justice. 

The advantages of a despotism are unity of counsel, 
activity, decision, secrecy, military strength, the exclu- 
sion of popular and aristocratical contentions, and the 
prevention, by a known order of succession^ of all com- 
petition for the supreme power. 

The evils to which it is liable are tyranny, expense, 
unnecessary wars waged to gratify the passions of an 
individual, uncertainty of obtaining a good prince, ig- 
norance in the rulers of the interests of the people, want 
of constancy and uniformity in the rules of government, 
and, finally, insecurity of person and property. 

An Aristocracy — -is that form of government in 
which the legislature and sovereign power are in a select 
assembly, the members of which either fill up by election 
the vacancies in their own body, or succeed to their 
places in it by inheritance, property, or in respect of 
some personal right or qualification. 

The word aristocracy is of Greek derivation, and is 
compounded of the adjective aristos, signifying best or 
wisest, and hratos, signifying power or strength. The 
whole word signifies that form of government in which 
a few of the wisest and best govern. 

The theory of this government is certainly a very 



What are the advantages of a despotism 1 
What are the evils to which it is liable 1 
What is an Aristocracy 1 

What is the derivation and signification of the word aristocracy 1 
What is said of the theory, as contrasted with the practical effects of this 
form of goverment 1 



POLITICAL KNOWLEDGE. 29 

beautiful one ; and if the best and the wisest were the 
rulers, the government would be as perfect as human 
ingenuity could* devise. But the practical effects of 
this form of government are often widely different from 
the advantages promised by the theory. 

Aristocracies are of two kinds : First, that in which 
the power of the nobility belongs to them in their col- 
lective capacity only ; that is, where, although the gov- 
ernment is vested in an assembly of the order, yet the 
members of that assembly, separately and individually, 
possess no authority or privilege beyond the rest of the 
community. 

Secondly, where the nobles are severally invested 
with great personal power and immunities, and where 
the power of the Senate is little more than the aggre- 
gated power of the individuals who compose it. 

Of these two forms of government, the former is far 
more tolerable than the latter. For in the former, 
although a few members of the Senate should be profli- 
gate enough to abuse their authority, it would still be 
difficult to obtain the con^nt of a majority to any spe- 
cific act of oppression. 

Or if the Senate had the will to do wrong, the povver 
would be more confined ; for one tyrant, whether the 
tyranny resides in a single person or in a Senate, cannot 
exercise oppression at so many places at the same 



Of how many kinds are ailstocracies 1 
What is the form first mentioned 1 
The second 1 
Wliicb is the more tolerable, and whv 1 

3* 



30 ELEMENTS OP 

time as may be exercised by a numerous nobility over 
their respective vassals and dependents. 

The peculiar advantage claimed for an aristocracy, 
is the wisdom which may be expected from experience 
and education. A permanent council naturally pos- 
sesses experience, and the members who succeed to 
their places in it by inheritance, will probably be edu- 
cated with a view to the stations which they are des- 
tined by their birth to occupy. 

The evils to which an aristocracy is liable, are dis- 
sensions among the ruling orders of the State, oppres- 
sion of the lowei* orders by the privileges of the higher, 
and laws partial to the separate interests of the law- 
makers. 

A DEMocRACY~is that form of government in which 
the legislature and sovereign power are in the hands of 
the people at large. The term democracy is derived 
from two Greek words, demos, signifying people, and 
hratos, signifying power, meaning that form of govern- 
ment in which the people rule. 

Democracies are of twp kinds : First, that in 
which the people govern themselves by primary as^ 
semhlies, as in ancient Athens — a mode which could 
be adopted only by the citizens of a small country, or 
inhabitants of one city. Secondly, where the people 



What peculiar advantage is claimed for an aristocracy 1 

To what evils is it liable 1 ■ 

What is a Democracy 1 

What is the derivation and signification of the word democracy 1 

Of how many kinds are democracies 1 

What is the kind first mentioned 1 

The second 1 



POLITICAL KNOWLEDGE. 31 

govern themselves by delegates, or through the princi- 
ples of representation, as in the United States. The 
iattsr form of democracy is more frequently called a 
B^public. 

The advantages of a Democracy or Republic, are 
civil liberty, equal laws, regulations adapted to the 
wants and circumstances of the people, public spirit, 
/rugality, averseness to war, and the opportunities 
vjhich democratic assemblies afford to men of every 
description for exhibiting their abilities to the public. 
Here merit seldom goes unrewarded, and a field fer thw, 
display of talent is always open. 

The evils to which a democracy is liable, are dissen- 
sions, tumults, and faction ; the attempts of the ambi- 
tious to possess themselves of supreme power, and the 
delay and disclosure of public counsels and designs. 

Knowledge and virtue among the people are the only 
conservative principles of a democratic form of govern- 
ment. 

A Limited Monarchy — is formed by a combination 
of two or more of these simple forms of government — 
despotism, aristocracy, and democracy ; and, in what- 
ever proportion either of these forms enters into the 
constitution of a government, in the same proportion 
may both the advantages and the evils which are at- 
h'ibuted to that form be expected. 



Wliat is the last mentioned form of a democracy often called ? 

Wliat^are the advantages of a democracy 1 

What are tlie catIs to which it is liable "? 

What are the only conservative principles of this form of government ? 

B.01V is a Limited Monarchy formed 1 



82 ELEMENTS OF 

Some limited monarchies are hereditary ; others are 
elective. 

A hereditary monarchy is universally to be preferred 
to an elective monarchy. A crown is too splendid a 
prize to be conferred upon merit, and nothing is gained 
by a popular choice worth the dissensions and tumults 
with which it is invariably attended. 

Besides, a king who passes to a throne through 
scenes of tumult, and often of bloodshed, will be liable 
to regard one portion of his subjects as the associates 
of his fortune, and the other as conquered foes. 

Also, the benefits to be derived from a uniformity of 
counsels and designs, may be expected with greater 
probability where the supreme power descends in the 
same race, and where each prince succeeds in some 
sort to the aim, pursuits, and disposition of his ancestory 
than if the crowii, at every change, devolve upon a 
stranger, whose first care will commonly be to pull 
down what his predecessor had built up. 

The English government is a hereditary limited 
monarchy, and is probably the best kind of limited mon- 
archy known It is formed by a combination of the 
three different forms of simple goverraent, viz. — des- 
potism or monarchy, which resides in the King — aris- 
tocracy, in the House of Lords — and democracy, in the 
House of Commons. 



Why is a hereditai-y monarchy to be preferred to an elective monarchy ? 
What is the best form of limited monarchy known 1 
Of what is the English government composed 1 



political knowledge. 66 

United States Government. 

There were originally three forms of government hi 
the American colonies, viz. — the Charter — the Pro- 
prietary — and the Royal governments. 

In the Charter governments, the people were allowed 
the right of choosing their own rulers. 

In the Proprietary governments, the power of ap- 
pointing officers and making laws rested in the proprie- 
tors, by the advice generally, and with the consent of 
the freemen. 

In the Royal governments, the governor and council 
were appointed by the crown, and the people elected 
representatives to the colonial legislature. The gov- 
ernor had a negative in both houses of the ■ legislature, 
and most of the officers were appointed by the king. 

In 1777, articles of confederation were adopted by 
most of the colonies, under which the Revolution was 
terminated. They were a mere league, which did not 
pretend to be a government, and were deficient in 
nearly all the attributes of sovereignty. In 1788, the 
present Constitution was adopted by most of the States, 
and soon after by all. 

The government of the United States is founded upon 
the consent of the people. The Constitution asserts 
that it was formed by " the people," and the ratifica- 



How many forms of government were there in the American colonies 1 
What were the Charter governments ? The Proprietary 1 The Royal ? 
When were the Articles of Confederation adopted, and wliat were they 1 
When was the present Constitution adopted ? 
Upon what is the government of the United States founded 1 



84 ELEMENTS 01* 

tions of all the States commence with " we the delegates 
©f the people" — hence, the foundation of our govern- 
ment is the consent of the people. Under despotic govern, 
ments, the people have often no voice in the choice of 
their rulers or their laws, and under monarchies and 
aristocracies frequently very little. 

The government of the United States is a Republic, 
or Democracy, because the people hold sovereign pow- 
er, and both the legislative and executive branches of 
the government are chosen by the people. 

It is a Federal Republic because composed of seve- 
ral States, some of which were originally independent, 
but which are now united under one general govern- 
ment. 

The government of the United States is a Represen- 
tative Federal Republic, because the people act through 
heir delegates. 

It is also a goyemment of majorities. In the conven- 
tions of the people which ratified the Constitution, a 
majority in any one convention made the decision, for 
no other rule could be adopted where they were subor- 
dinate to no authority but their own. Members of the 
House of Representatives are chosen by majorities of 
the people, and the House of Representatives decides 
by majorities. 

A majority of the House of Representatives consti- 



How does this appear ? 

Why is the government a Republic 1 

Why a Federal Republic ? 

Why a Representative Federal Republic ' 

Why is it a governiacht of majorities I 



POLITICAL KNOWLEDSE. 35 

tutes a quorum. Members of the Senate are chosen 
by majorities of the State legislatures. ?<Iajorities 
in Congress decide all questions upon which their ac- 
tion is required. 

But there are some exceptions to this rule of majori- 
ties. 

1st. Where bills have .passed both Houses of Con- 
gress, and the President has refused them his sanction, 
they may become law if repassed by two thirds of each 
house. 

2d. The President and two thirds of the Senate form 
treaties. 

3d. It requires two thirds of the House of Represen- 
tatives to make impeachments, and two thirds of the 
Senate to convict a person upon impeachment. 

The Judges are appointed by the President, who is 
elected by a majority ; and their appointments are con- 
firmed by the Senate, also elected by a majority. The 
Judges, are, therefore, appointed indirectly by a ma- 
jority. They are necessarily far removed from popu- 
lar influence. 

Thus, the whole structure of the government is based 
upon the acts of majorities, and these majorities at last 
rest upon majorities of the whole people. The excep- 
tions to this almost universal rule, are cases of obvioua 
and urgent necessity. 



What tliree exceptions to this rule of majorities 1 

How are the Judges appointed 1 

What is said of the exceptions to the rule of majorities I 



36 ELEMENTS OP 

Constitution — is the constituted form of govern- 
ment. It is the fundamental law ; the regulation which 
determines the manner in which the authority vested in 
government is to be executed. 

The Constitution of the United States was delineated 
by the hand of the people, and ratified by them in their 
original, sovereign, social capacity. These ratifica- 
tions were made in conventions of the people, and in the 
name of the people, and not in the name of the States. 
Hence, the Constitution proceeded from the people, in 
their sovereign capacity. 

The Constitution of the United States acts upon 
both individuals and States. It acts upon the States, 
for almost every article in the Constitution refers to 
the States, and requires something to be done by them 
or prohibits them from doing something. It acts upon 
individuals, because Congress has power to tax the 
people, arm the militia, &c. 

The Constitutions of the States act upon individuals, 
and not upon the government of the United States, nor 
upon each other. 

They act upon individuals, because State legislation 
is mostly municipal, and refers to individuals only. 

They do not ^ct upon each other, because, as it re- 
spects each other, the States are precisely equal. 

They do not act upon the United States, because that 



What is a Constitution ? 

By whom was the Constitution of the United States delineated, and how 
ratified ? 
Upon whom does the Constitution of the United States act 1 
Upon whom do the C«>R«(t,sS,ution3 of the States act 1 



POLITICAL KrCOWLEDGE. 37 

would be incompatible with the national sovereignty of 
the General Government. 

The government of the United States is perpetual, 
unless abrogated by the will of a majority of the people. 
A government justly constituted can be justly abro- 
gated only by the same power which brought it into 
existence. A majority of the people, in their sove. 
reigp capacity, formed the government, and they alone, 
in that capacity, can abrogate it. 

The State governments are not the people in their 
sovereign capacity, and cannot therefore change the 
General Government ; for they cannot unmake what 
they never had power to make. As the Constitution 
was formed by a majority of the whole people, one 
State, v/hich must be si .minority, cannot alter the acts 
of a majority. 

As the Constitution acts upon individuals, one State 
cannot secede from the Union, and establish a separate 
government of its own, any more than could a few in- 
dividuals, or a town. Any less number than a majority 
would subject themselves to the penalties of treason, by 
revolutionary acts. The Constitution acts upon indi- 
viduals, without any reference to State lines. 

If the form and principles of the government are to 
be in any manner changed, they must be changed by a 
majority, in the manner pointed out by the Constitu- 
tion. 



What is said of the perpetuity of the government 1 
Who only have the power of changing or abrogating the government 1 
Why may not the State governments change the General Government ? 
Why may not a State secede from the Union ? 

4 



S8 ELESiEr-rrs of 

The people, indeed, in their sovereign capacity, have 
the power to abolish their form of government, and 
establish a new one : it is only asserting the common 
right of all nations, to alter and amend their forms of 
government. That is the right of revolution — the last 
right to which oppressed nations resort. Until that 
right be exercised, the Constitution must be perpetual. 

The Constitution of the United States is a written 
form of government, definite, clear, and explicit in its 
details ; so that all may, know its principles and its re- 
quisitions. It is the first example in history where 
the sages of a nation, delegated by, and from among 
the people, met together to form a constitution and 
laws for their government. 

The forms and principles of most other governments 
have been constantly changing with the character of 
the times, and with the varying opinions and manners 
of the people. The}^ have been the results of chance 
more frequently than of design, and their constitutions 
€ire to be learned only from thejr history. 

The English Constitution is not found in any one 
written article, but consists of acts of Parliament, de- 
cisions of courts of law, and immemorial usages. 

According to the theory of the British government, 
the English Constitution may at any time be abroga- 
ted by Parliament : — Parliament being absolutely om- 
nipotent. But the theory of the American government 



What is said of the form of tlis Constitution of the United States, as com- 
pared with the Constitutions of other governments 1 
Of what does the Engiish Constitution consist 1 



POLITICAL KJTOV/LEDGE. 39 

is widely different from this ; for the Constitution is 
the original act of the people themselves ; and they 
aloncj and not Congress,, can alter it. 

Common Law — comprises those principles, usages, 
and rules of action, which do not rest for their authority 
upon the positive will of the Legislature. , In other 
words, it consists of those customs and rules to which 
time and usage have given the sanction of law. 

Of such, it is plain, must be the great body of the 
laws of every people ; for the rules of business and the. 
usages of society are so variable and complicated as 
to be incapable of being governed wholly by statute law. 

It was remarked by Lord Hale, that " the origin of 
the common law is as undiscoverable as the head of the 
Nile," it consisting of those scattered maxims and cus- 
toms which have existed " time whereof the memory of 
man runneth not to the contrary." 

The English common law has been generally adopt 
ed in this country, subject however to some few modi 
fications. 

In some cases differences of circumstance and situa 
tion have introduced new customs in this country 
since the Revolution, that were unknown in England 
and^ others have since arisen there which are here un 



What power has Parliament in changing the British Government, and how 
compared with the American Congress 1 
What is Common Law ^ 

Of what must he the great body of the laws of every people 1 
What has been said of the origin of the common law 1 
From whence has the common law of this country been derived 1 
To what modifications has it been subject 1 



40 ELEMENTS OF 

known. But with this qaalification the present com- 
mon law of England is that of the several American 
States with the exception of Louisiana, which, on ac- 
count of its French origin and population, is governed 
by the French or Roman law. 

Statute Law — is the express written will of the 
Legislatwe. Thus the statutes of New York are the 
laws enacted by the Legislature of New York. The 
common law in the United States is modified by the 
statutes of Congress, and by the Legislatures of the 
States. The statutes of Congress relate chiefly to the 
promotion of specific national objects ; and in general 
do not in any way change the common law. 

The statutes of the State Legislatures, sometimes, 
although seldom, alter the common law. Their object 
is chiefly to define and establish the principles of com- 
mon law, — to provide for the protection of rights and 
the redress of wrongs, and to establish and regulate the 
various departments of State government. 

When the statute declares in what manner an act 
must be performed, it must be performed in the mani^er 
specified, or it will not be binding in law. Thus if the 
statute declares that a will shall be made in a certain 
form, it will not be valid if executed in any other form. 
The statute laws must be consistent with the Constitu- 



What is the common law of Louisiana ? 
What is Statute Law 1 
How is tlie common law modified 1 
To what do the statutes of Congress chiefly relate 1 
What are the several objects of the statutes of the State Legislatures ? 
How must the statutes be performed; and with what must they be consis- 
tent 1 



POLITICAL KN(fWLEDGE. 41 

tion : for the Constitution being i\\Q fundamental law, 
created by the people themselves, all other laws are in- 
ferior to it. 

Statute law is superior in force to common law ; and, 
wherever they are inconsistent with each other, the 
latter gives place to the former. 

A Corporation — is defined to be a hody-j^oUtic, hav- 
ing a common seal. It is an artificial or political per- 
son, maintaining a perpetual succession by means of 
several individuals united in one body, through a com^ 
men seal. 

Corporations have a legal immortality, except so far 
as they are limited by the law of their creation. They 
were originally created for purposes of charity, trade, 
or education; but are now used for all purposes in 
which it is wished to transmit a con^non property. 

Thus, all banks, railroad companies, and chartered 
societies, are examples of corporations. 

Charter — is the act creating the corporation, or 
separate government; or the privileges bestowed upon 
a community, or a society of individuals. It is derived 
from the Latin term cliarta, signifying a writing. 

A Party — is any number of persons confederated by a 
similarity of objects and opinions in opposition to others. 
Illustrations of this may be found in all countries. 

Wliich is superior, Statute or Coiumon Law 1 

What i» a Corporation 1 

For what purposes were Corporations originally created, and for what are 
they now used 1 

What are examples of Corporations 1 

What is a Charter 1 From what is the term derived ? 

What is a Party 1 What examples of parties in England ? In France I 
And oil the contment of Europe 1 

4* 



42 ELEM^Urs'TS OF 

In Eiiglandf the whigs and tories are two great par- 
ties, Yvhich have long divided the nation. 

In France, during the revolution, the jacobins and 
royalists Vv^ere violently opposed to each other. 

On the continent of Europe, there have long been the 
parties of the liberals and absolutists. The former are 
advocates of republican, and the latter of monarchical 
principles. 

In the United States, the federal and democratic 
parties divided the country till the termination of the 
last war. 

A Faction — is any number of persons, whether 
majority or minority, confederated by some common 
motive, in opposition to the rights of other persons, or 
to the Interests of community. 

The difference i>etween 'party and faction, then, is, 
that the former is a difference of principle, and is 
founded on a general or public object ; the latter may 
have anymotive, however personal or selfish, and be di- 
rected towards any end, however little connected with 
the public welfare. 

Thus, two divisions of the people, differing as to the 
manner in which the government shall be administered, 
are parties; but a section whose object is to keep one 
portion of the people from the enjoyment of power, or 
to aggrandize an individual, or to divide among them- 
selves all the offices of state, is Vi faction. 

What is a Faction 1 What is the difference between Party and Faction 
Esample 1 



PART SECOND 



CONSTITUTIONAL LAW. 



Origin of the Constitution of the United States. 

The continent of North America was chiefly settled 
by emigrants from Great Britain, who came out as 
colonists of the mother country. 

Many of them had fled from England, to avoid the per- 
secution which they incurred by advocating principles 
in opposition to the established religion, and, voluntarily 
nbandoning the comforts and luxuries of home, they 
were willing to encounter the dangers and privations of 
a v/ilderness, that they might enjoy greater liberty of 
conscience, and a more simple and a purer form of 
worship. 

Others were induced by the thirst for novelty and 
the desire of adventure, and some were sent out by the 
government to form settlements and secure possession 
of the country. 

But they still considered themselves subjects of 
Great Britain, and submitted to the jurisdiction of her 
laws. 

In some parts of the country they were left for a 
while to govern themselves, and adopted democratic 
forms of government ; in other parts the lands were 



44 CONSTIrUTION OF THH 

granted by charter to individuals, who formed settle- 
ments and regulated the governments of their respec- 
tive colonies ; and in other parts governors were ap- 
pointed by the crown. 

Difficulties soon arose between the American colo- 
nies and the mother country, which continued to in- 
crease during a period of more than one hundred and 
fifty years, until the colonies, being harassed by re- 
peated injuries and usurpations, and by the exercise of 
an unwarrantable jurisdiction over them, were obliged 
to resort to arms in defence of their rights, and to dis- 
solve their allegiance to the British crown. 

A form of government was then necessary, and 
" Articles of Confederation" were adopted, under which 
the Revolution was brought to a happy termination. 
But the Articles of Confederation being a mere league 
between the several States, were found to be a very in- 
efficient form of government, and the necessity of re- 
vising the system soon became apparent. 

In 1787, delegates appointed by the several States 
for this purpose met at Philadelphia ; the result of 
-whose deliberations was the adoption by them, and the 
ratification by the States, of the present Constitution, 
which, since that period, has continued in successful 
operation. 

The importance of a knowledge of the principles of 
the Constitution, not only to every one who aspires to 
the character of a gentleman and a scholar, but to 
every citizen of the Republic, however humble his sta- 
tion, is at once evident, from the very system of the 
government under which we live — a goverment in 



UNITED STATES. 45 

which the people are the rulers — a government in 
which every citizen is a legislator, and may aspire to 
the highest offices within the gift of the people. 

The Constitution of the United States is the plan of 
the first civil government ever established upon the 
genuine basis of freedom, and its principles should be 
studied both on account of their pre-eminent excellence, 
and because an acquaintance with them will better 
enable a person to fulfil those duties which, in a free 
government, he may be called to discharge. 



46 CONSTITUTION OF THE 

CONSTITUTION OF, THE UNITED STATES. 

PREAMBLE.^ 

We, the people of the United States, in order to form 
a more perfect union, establish justice, insure domestic 
tranquillity, provide for the common defence, promote 
the general welfare, and secure the blessings of liberty 
to ourselves and our posterity, do ordain and establish 
this Constitution for the United States of America. 



ARTICLE. I. 
Of the Legislature. 

SECTION I. 

All legislative'^ powers herein granted shall be vested 
in a congress^ of the United States, which shall consist 
of a Senate and House of Representatives. 

^A preamble is a preface or introduction, the object of which 
is to announce the character and design of the work to which 
it is prefixed. 

The preamble to the Constitution asserts that the power which 
formed the Constitution resides in the people, and that the oh 
jects of the Constitution are to secure the rights, and to pro. 
vide for and promote the general welfare of the people. 
Section 1st. 

^Legislative power is the law-making power. Thus, in a 
Republic the Legislature is that branch of the government in 
which the people have vested the power of making laws. 

'^Congress is a meeting for the settlement of national affairs, 

What is the object of the Constitution, as expressed in the preamble 1 
What is a preamble 1 

Art. 1st.— In what is the legislative power vested 1 What is legislativ* 
power 1 What is a Congress 1 



UNITED STATES. 47 



SECTION II. 

First Clause. — The House of Representatives shall 
bs composed of members chosen every second year by 



whether relating to one or more nations. In Europe a confer, 
ence of different powers by their ministers is called a Congress. 
In the United States the National Legislature is called the Con, 
gress. 

The object in dividing the legislative power between two 
bodies, is to render measures less precipitate, and combine vir- 
tue, wisdom, and experience. A hasty decision, or an unwise 
law, is not so likely to be passed when the decisions of one 
house are subjected to a jealous and critical review in the other. 

The members of the House of Representatives coming direci;- 
ly from the people, will naturally be retained within their influ- 
ence ; while the Senate, being chosen for a longer period, and 
by the Legislatures of the States, will be less dependent upon 
the people, and consequently farther removed from the action of 
popular passion. It is the same principle which regulates the 
distribution of legislative power in Great Britian and in France, 
So also the legislative power of the State governments is simi- 
larly vested in tv/o houses. . ^ 

Section 2d. — First Clause. 
1, A representative is chosen for two years. In England mem- 
bers of the House of Commons are chosen for seven years. The 
object in having frequent elections, is to make the reprcsenta . 
live more directly responsible to the people, and to have the 
views and interests of the people represented ; yet its effect is 



What is the object in dividing the legislative power between two bodies 1 
Sec. 2d. — 1st Clause. — Of vv'hom is the House of Representatives com- 
posed 1 

What is the object in having frequent elections 1 And what, further 
more, is its effects 1 



48 CONSTITlJTlOi'f OP THE 

the people of the several States, and the electors* in 
each State shall have the qualifications reijjisite for 
electors of the most numerous branch of the State 
Legislature. 

Second Clause. — No person shall be a representative 
who shall not have attained to the age of twenty-five 
years, and been seven years a citizen of the United 

also to render the representative less independent, and place him 
more under the influence of party and sectional interest. Vir- 
tue and intelligence in tlie people are the only means that will 
secure the s.ime qualities in their representatives ; and while the 
people remain virtuous and intelligent, no danger can arise from 
frequent elections. 

''■An elector is one who has a vote in the choice of an officer. 
" The electors in each State," here spoken of, are those who are 
entitled, by the laws of the State in which they reside to vote 
for members of the most numerous branch of the State Legisla- 
ture ; consequently, those who are entitled to vote for members 
of this branch of the State Legislature, may vote for members 
of the House of Representatives, And as the right of suffrage 
is now almost universal to American citizens of twenty-one 
years of age, nearly all have a voice in the choice of their 
rulers. 

Second Clause. 
It has been decided that a man residing at the seat of govern- 
ment in his official capacity, does not cease to be a legal inhabi- 
tant of the State of which he was a citizen ; consequently, such 
person is entitled to all the privileges of citizenship, and is eligi- 
ble to an office in the State from which he came. 

What are the qualifications of electors of Representatives 1 What is an " elec- 
tor!" Who are the electors spoken of in this clause of the Constitution % 

2d Clause. — What qualifications are required of a representative 1 What is 
<jaid of the citizenship of a man resid ng officially at the seat of government 1 



UNITED STATES. 49 

States, and who shall not, when elected, be an inhabitant 
of that State in which he shall be chosen. 

Third Clause, — ^Representatives and direct taxes 
shall be apportioned among the several States which 
may be included within this Union, according to their 
respective numbers, which shall be determined by ad- 
ding to the whole number of free persons, including 
those bound to service for a term of years, and, exclu- 
ding Indians not taxed, three fifths of all other persons. 
The actual enumeration shall be made within three 
fears after the first meeting of the Congress of the 



Third Clause. 

The appointment of representatives was one of the greatest 
difficulties the framers of the Constitution had to encounter. 
The smaller States claimed a right, as independent sovereign, 
ties, to an equal share in the General Government ; while the 
larger ones insisted upon having an influence proportioned to 
the number of their inhabitants. But a compromise was finally 
effected, by wliich the larger States were allowed their just 
share of influence in one house, and the equality of the smaller 
States was recoo-ajved and admitted in the other. 

The representai^ -population is not the whole population of 
the United States ; for, after including all free persons, exclud- 
ing Indians not taxed, it includes " three fifths of all other per- 
sons." The " other persons" here mentioned are slaves, conse- 
quently the slaveholding States have a representation for three 
fifchs of the whole number of slaves. Thus, the citizens of 
slaveholding States have, individually, greater political power 
than the citizens of noti-slaveheldins: States ; but this was a ne- 



M Clause.— Row are representatives and direct taxes apportioned among 
the States 1 How often must the citizens be enumerated for this purpose "? 
What difficulty had the framers of the Constitution to encounter in the ap- 
pointment of representatives 1 "What compromise was effected ? Who are 
.5 



60 CONSTITUTION OF THE 

United States, and within eveiy subsequent term of tcK 
yearsy in such a manner as they shall by law direct. 

The number of representatives shall not exeeed one 
for every thirty thousand, bet eaeh State shall have at 
least one representative, and until such enumeration 
.shall be made, the State of New-Hampshire shall be en* 
titled to choose three, Massachusetts eight, Rhode Island 
and Providence Plantations one, Connecticut five, New- 
York six. New- Jersey four, Pennsylvania eight, Dela» 
ware one, Maryland six, Tirginia ten. North Carolina 
five, South Carolina five, and Georgia three. 

Fourth Clause. — When vacancies happen in the; 

cessary- result of the compromise, without which it is probable 
the Union would never have been formed. But direct taxes are 
also to be apportioned by the same rule as representation, so that 
the same cause which increases their influence in the National' 
Legislature, subjects them to the necessity of making larger 
contributions to the national treasury when that mode of taxa= 
tion is resorted to. 

The ratio of representation is a common divisor of the num- 
bers in the several States, and not in the whole Union. The- 
ratio has been changed from time to time by Congress^ In 1790,^ 
the period of the first census,, the ratio, or the number of citi- 
zens entitled to a representative, was 33,000, and the whole 
number of representatives was 106. In 1830, the ratio wa& 
47,700, and the. whole number of representatives 249. 

Fourth Clause. 
The necessity for this clause frequently arises by virtue of the 
death or regign5j,tion of members of Congress. 

^e " other persons" spoken of in this clause, and what is said of the repre^^ 
sentation of the slaveholding States 1 What is understood bj' the ratio of 
representation 1 What was the ratio of representation in 1830 ? 

Wl Clause.—Wbf't ia the fn-^v!h f'n,,K8 1 



UNITED STATES 51 

representation from any State, the executive authority 
thereof shall issue writs of election to fill up such va- 
cancies. 

Fifth Clause. — ^The House of Representatives shall 
choose their Speaker, and other officers, and shall have 
the sole power of impeachment.^ 

Fifth Clause. ' 
The Senate aI§o choose theii* own officers, with the exception 
of the Speaker. The Vice-President of the United States is 
Speaker of the Senate. 

^Impeachment is a public accusation, by a body authorized to 
make it. - 

The power of impeachment, as vested in the House of Rep- 
resentatives, extends only to officers of the General Government. 
This power is one of the most important under the Constitution. 
It is the only mode in which the Judiciary is made responsible, 
and it is a salutary and necessary check upon the President and 
his officers. 

The mode of impeachment is this : — The House pass a reso- 
lution to impeach, arid then appoint a committee to manage the 
impeachment, and prepare the articles of accusation. The 
Senate, (upon which devolves the power of trying the person 
impeached,) is then informed that such charges are preferred by 
the House, and it then resolves that on a given day, the Senate 
will sit as a Court of Impeachment. 

In the meantime, the accused is summoned to appear and an. 
swer, and as many subpoenas for witnesses arc issued as either 
party may direct. At twelve o'clock, on the day of trial, the 



5th Clause. — By whom is the Speaker of the House of Representatives 
chosen 1 Who is Speaker of the Senate 1 What is impeachment 1 What 
officers may be impeached by the house 1 What is the mode of impeach- 
ment? 



52 CONSTITUTION OF THE 



SECTION III. 

First Clause. — The Senate of the United States 
shall be composed of two Senators from each State, 

Secretary of the Senate administers an oath to the President of 
the Senate, that " he will do impartial justice, according to the 
Constitution and law^ of the United States." The same oath 
is then administered by the President, to each Senator present. 

Witnesses are examined and cross-examined in the usual 
manner. Questions proposed by Senators are reduced to 
writing, and put by the President. Counsel are then heard 
for the respective parties ; all motions are addressed to the 
President, and decisions are made by ayes and nays, without 
debate. 

After the case has been fully considered, the question is pro- 
pounded by the President of the senate, to each 'individual 
member, whereupon the member rises and answers guilty, or 
not guilty, as his opinion is. It requires two thirds to make a 
conviction. 

If the accused be found guilty, the Senate proceeds to fix and 
declare the punishment. 

State officers may be impeached in a similar manner by the 
Legislatures of the several States. 

Tills mode of impeachment and trial, is derived from the 
Britisli Parliament, in which the Commons have the sole power 
of impeachment, and the House of Lords the power of trial. 

Section 3d. — First Clause. 
In the Senate, each State is equally represented. It has been 
.said that this feature of the Senate, is an evidence of the sepa- 



Sec. 3d.— 1st Clause.— 'Who compose the senate ? For how long a term 
are Senators chosen 7 As each state is equally represented in the Senate, is 
not this an evidence of the separate and independent existence of the States? '5 






UNITED STATES. 53 

chosen by the Legislature thereof, for six years ; and 
each Senator shall have one vote. 

Second Clause. — Immediately after they shall be as- 
sembled, in consequence of the first election, they shall 
be divided, as equally as may be, into three classes. 



rate and independent existence of the States. Yet the contrary 
is shown by the fact, that the Senate votes not by States, but 
by persons. Hence the members from a given State, may and 
often do vote on opposite sides of a question. 

The true theory of our government is, that our Senators and 
Representatives should legislate for the whole Union, and not 
exclusively for the interests of a particular section. It is, how- 
ever, supposed that each will be best acquainted with the inter- 
ests of his immediate constituents ; that he will represent their 
interestSj and make known their wishes, and then endeavor, as 
far as possible, to unite the interests of each section in the com- 
mon welfare. 

The Senators being chosen by the State Legislatm-es, it is 
settled by the practice of most of the States, that they may be 
chosen by joint ballot of both houses, and not necessarily by 
the Legislature, in its official capacity ; each house having a 
negative on the other. 

Second Clause. 
Care is taken that but one vacancy shall occur at the same 
time, in the representation of any one State. The Governor of 
a State can make no appointment of a Senator, in anticipation 
of a vacancy. The vacancy must exist when the appointment 
is made. 



What interests should be regarded in the legislation of Congress 1 What is 
the manner of choosing Senators by the State Legislatures 1 

'2d Clause.— Row were the Senators divided after their first electi( n 1 

How, if the vacancy be anticipated 1 

5* - " 



54 CONSTITUTION OF THE 

The seats of the Senators of the first class, shall be 
vacated at the expiration of the second year ; of the 
second class, at the expiration of the fourth year ; and 
of the third class, at the expiration of the sixth year ; 
so that one third may be chosen every second year ; 
and if vacancies happen, by resignation or otherwise, 
during the recess of the Legislature of any State, the 
Executive thereof may make temporary appointments, 
until the next meeting of the Legislature, which shall 
then fill such vacancies. 

Third Clause, — No person shall be a senator who 
shall not have attained to the age of thirty years, and 
been nine years a citizen of the United States, and 
who shall not, when elected, be an inhabitant of that 
State for which he shall be chosen. 

Fourth Clause. — The Vice-President of the United 



Third Clause. 
The age required for a member of the House of Representa. 
tives, is only tvventy-five years. The nature of the Senatorial 
trust requires, in many particulars, greater maturity of judg- 
ment, and more extensive information, and therefore renders this 
distinction very proper. 

Fourth Clause. 
The Vice-President has the power of preserving order in the 
Senate, and all questions of order are decided by him, without 
debate, subject to appeal to the Senate. 



How are vacancies supplied whicli happen during the recess of the Legis- 
lature of a State 1 

2d Clause. — WhdA qualifications are requisite for a Senator ? 

Ath Clause. — W^ho is President of the Senate, and when only may he vote 1 
What are the powers of the Vice-President 1 



rNITED STATES. 55 

'States shall be President of the Senate ; but shall have 
no vote, unless* they be equally divided. 

Fifth Clause. — The Senate shall choose their other 
officers, and also a President pro tempore, in the absence 
of the Vice-President, or when he shall exercise the 
office of President of the United States. 

Sixth Clause. — The Senate shall have the sole power 
to try all impeachments. When sitting for that pur- 
pose, they shall be on oath, or affirmation. When the 
President of the United States is tried, the Chief Justice 
shall preside ; and no person shall be convicted with- 
out the concurrence of two thirds of the members 
present. 

Seventh Clause. — Judgment, in case of impeach- 
ment, shall not extend farther than to a removal from 
office, an^ disqualification to hold and enjoy any office 
of honor, trust, or profit, under the United States; 
but the party convicted shall, nevertheless, be liable 
and subject to indictment, trial, judgment, and punish- 
ment, according ta law. 



Fifth, Sixth, and, Seventh Clauses, 
In England, the judgment upon impeaclimenls, extends not 
vonly to removal from office, but to the whole penalty attached 
hj law to the oifenee. The House of Lords may, therefore, in- 
flict capital punishment, banishment, or forfeiture of goods, ac- 
cording to its discretion. 

■5th Clause.— How are the ether officers of the Senate choseu 1 

6tA Clduse. — Who try impeachments 1 Who presides when the President 

<jf the United States is tried "? 
Ith Clause.— In the trial by impeachment, how far may judgment extend 1 

How is it in England 1 



56 CONSTITUTION OF THE 



SECTION IV. 

First Clause.— The times, places, and manner of 
holding elections for Senators and Representatives, 
shall be prescribed, in each State, by the Legislature 
thereof; but the Congress may, at any time, by law, 
make or alter such regulations, except as to the places 
of choosing Senators. 

Second Clause,— The Congress shall assemble at 
least once in every year, and such meeting shall be on the 
first Monday in December, unless they shall, by law^ 
appoint a different day, 

SECTION V. 

First Clause. — Each house shall be the judge of the 
election, returns, and qualifications of its own mem- 
bers, and a majority of each shall constitute a quorum 
to do business ; but a smaller number may adjourn from 

Section 4:th. — First Clause. 
Although Congress has the power to appoint the times and 
modes of choosing Senators and Representatives, this power has 
never been exercised by them. It might be well to have the 
times and modes of election uniform ; but they are now various 
in the several States^ 

Section Fifth. — First, Second, and Third Clauses. 
It has been a point of serious controversy, whether the Senate 

Sec. 4th. — 1st Clause. — Who determine the time, places, and manner oi 
holding elections for Senators and Representatives 1 What power has Con- 
gress over the matter 1 

2d Clause. — How often must Congress assemble 1 

Sec. 5th. — 1st Clause. — Who is to judge of the validity of the elections and 
qualifications of members of Congress 1 



UNITED STATES. 57 

day to day, and may be authorized to compel the at- 
tendance of absent members in such manner, and un- 
der such penalties, as each house may provide. • ^ 

Second Clause. — Each house may determine the 
rules of its proceedings, punish its members for disor- 
derly behavior, and, with the concurrence of two-thirds, 
expel a member. 

Third Clause, — Each house shall keep a journal of 
its proceedings, and, from time to time, publish the 
same, excepting such parts as may, in their judgment, 
require secrecy ; and the yeas and nays of the mem- 
can, without violating the third clause of this section, expunge 
from the journal, acts passed during a previous session. 

The clause, " to keep a journal," would seem to imply, that 
the journal should be legible, and should in no manner be de- 
faced ; otherwise, if black lines may be drawn, and words written 
across a recorded resolution, at the pleasure of a succeeding 
Senate, the clause in the Constitution is a nullity. 

It has been said, that a recorded resolution may be " expunged"' 
from the journal, without being " destroyed" — the journal is pub- 
lished, and the resolution also, as it was passed. But if, in any 
succeeding act, reference ' should be made to the journal, the 
best, and in all cases the ultimate authority, would be the jour 
nal as "kept" by the House. 

It would seem a dangerous precedent to establish, that one 
Congress might erase from the journal whatever it deemed un- 
wise, unjust, or unconstitutional in the legislation of former 
houses. Where the acts of a former Congress were deemed 
anjust, or unconstitutional, there could certainly be no constitu.. 
'ional objection to the introducing of counter resolutions. 

2(1 ClaiLse.— How may a member of either house be expelled 1 
3i CZaitse.— What duty is enjoined upon each house, relative to a journal 
»f its proceedings 1 What controversy has arisen from this clause 1 



58 CONSTITUTION OP THE 

bers of either house, on any question, shall, at the de- 
sire of one fifth of those present, be entered on the 
jottrnal. 

Fourth Clause. — 'Neither house, during the session 
of Congress, shall, without the consent of the other, 
adjourn for more than three days, nor to any other 
place than that in which the two houses shall be sit- 
ting. 

SECTION VI. 

First Clause.— -The Senators and Representatives 
shall receive a compensation for their services, to be 
ascertained by law, and paid out of the Treasury of 
the United States. 

They shall, in all cases, except treason,^ felony,^ and 
breach of the peace,^ be privileged from arrest during 

Section 6th. — First Clause. 

^ Treason consists in one or more of these three things — levy- 
ing war against the United States — adhering to their enemies- 
giving them aid and comfort. The war must be actually levied, 
to constitute treason ; a conspiracy to levy war, is not treason. 

^Felony, according to the English law, is any crime which 
occasions a forfeiture of lands and goods. But felony, in com- 
mon speech, signifies any capital offence. 

'^The term "breach of peace," includes all indictable offences. 

For a speech, merely delivered in the House, a member can- 
not be questioned ; yet, if he publish the speech, and it contain 
a libel, he is liable to an action for it as in any other case. 



A.th Clause. — What length of time may either house adjourn, without con- 
sent of the other? 

Sec. 6th. — 1st Claiise. — ^In what cases are Senators and Representatives 
privileged from arrest 1 What is treason 1 Felony 1 Breach of the peace 1 



UNITED STATES. 59 

their attendance at the session of their respective 
liouses, and in going to and returning from the same ; 
and, for any speech or debate, in either house, they 
shall not be questioned in any other place. 

Secand Clause. — ^No senator or Representative shall, 
during the time for which he was elected, be appointed 
to any civil office, under the authority of the United 
States, which shall have been created, or the emolu* 
raeiits v/hereof shall have been increased during such 
time ; and no person, holding any office under the Uni- 
ted States, shall be a member of either house, during his 
continuance in office. 

SECTION VII. 

First Clause. — AM bills for raising revenue, shaU 
originate in the House of Representatives; but the 
Senate may propose or concur with amendments, a« on 
other bills. 

Section Ith. — First Clause. 

Bills for raising revenue do not include all bills whicTi bring 
■money into the Treasury. Thus, bills for the sale of public 
3ands, for regulating the Post-ofRce, and Mint, are directly pro- 
iductive of money, and may originate in either house. The 
?neaning of the phrase is confined to bills to levy taxes. • 

This provision is borrowed from the British Constitution, by 
which bills for raising revenue must originate in the House of 
Commons, whose members are the exclusive representatives of 

2d Clause.— M7hdX restrictions are placed upon Senators and Representa- 
tives ■? 

Sec. 7th'.— 15< Clause.— Whete must bills for raising revenue originate? 
What do " bills for raising revenue" include % From what is this :j»ovisioa 
in the Constitution borrowed^ 



60 CONSTITUTION OF THE 

Second Clause, — Every bill which shall have passed 
the House of Representatives and the Senate, shall, be- 
fore it become a law, be presented to the President of 
the United States ; if he approve, he shall sign it ; but 
if not, he shall return it, with his objections, to that 
house in which it shall have originated, who shall 
enter the objections at large on their journal, and pro- 
ceed to reconsider it. 



the people. So tenacious of this privilege are the Commons, 
that the Peers are not even allowed to amend a money bill ; 
they must reject it, or adopt it, as it has been framed by the 
Commons. 

Second Clause. 

The ordinary mode of passing laws, is, briefly, as follows : — 

A member of either house, wishing to propose a bill, gives at 
least one day's notice of his intention ; and, on the day specified 
by him, makes a motion accordingly. If the motion prevails, 
the bill is read. On some other day, the bill is called up, con- 
sidered, and passed to a second reading. Amendments are then 
in order. 

In the House of Representatives, bills, after being twice read, 
are committed to a committee of the whole house, when the 
Speaker leaves the chair, a^d takes part in the debate, as an or- 
dinary member, and a chairman is appointed by him, to preside 
in his stead. 

Having been a third time read, the bill is passed, and trans- 
mitted to the other house, where it goes through a similar form ; 
though in the Senate there is less formality, and bills are often 



M-Clause.—'Wh^t is necessary in order that a bill, passed by both houses, 
shall become a law 1 What if the President refuse to sign the bill 1 What 
is the ordinary mode of passing laws in both houses 1 



''^' UNITED STATES. 61 

If, after such reconsideration, two thirds of that 
house shall agree to pass the bill, it shall be sent, to- 
gether with the objections, to the other house, by which 
it shall likewise be reconsidered ; and if approved by 
two thirds of that house, it shall become a law. 

But, in all such cases, the votes of both houses shall 
be determined by yeas and nays ; and the names of the 
persons voting for and against the bill, shall be entered 
on the journal of each house respectively. 

committed to a select committee, chosen by ballot, instead of a 
committee of the whole house. 

These regulations are rules of convenience, adopted by the 
two houses, and may be changed by them at pleasure. If a bill 
be not presented to the President, more than ten days before tho 
end of the session, he has it in his power to defeat it by simply 
withholding his signature. 

The power given to the President, of placing his veto upon 
laws passed by Congress, was adopted after much discussion and 
great opposition. It was designed as an additional security 
against the enactment of improper laws, and as a defence of the 
Executive against the encroachments of the Legislature. 

Should the Presi-dent abuse the veto, it is presumed the Con- 
gress would pass the bill in question, by the constitutional ma- 
jority of two thirds. The power of the President to return bills, 
with his objections, has been repeatedly exercised. 

The King of England has an absolute negative upon all bUls 
passed by Parliament ; but, for more than a ceittury, he has not 



What if the bill be not returned within ten days after its presentation 
to him'? 

Wliat was tlie design in giving the President the power of placing his veto 
upon laws passed by Congress 1 What remedy, if the President greatly abuse 
this power 1 What power has the King of England in similar cases, and la 
that power often exercised 1 

6 



62 CONSTITUTION OF THE 

If any bill shall not be returned by the President 
within ten days, (Sundays excepted,) after it shall have 
been presented to him, the same shall be a law, in like 
manner as if he had signed it, unless the Congress, by 
their adjournment, prevent its return, in which case it 
shall not be a law. 

Third Cla,use.— 'Every order, resolution, or vote, to 
which the concurrence of the Senate and House of 
Representatives may be necessary, (except on a ques- 
tion of adjournment,) shall be presented to the President 
of the United States ; and before the same shall take 
effect, shall be approved by him ; or, being disapproved 
by him, shall be repassed by two thirds of the Senate 
and House of Representatives, according to the rules 
and limitations prescribed in the case of a bill. 

exercised this power — -the influence of the crown being sufficient 
to arrest an obnoxious measure in its passage through Parliament. 

Third Clause. 

The "orders, resolutions, and vote," here referred to, are not 
those which relate to the separate and internal government of 
each house. The President has no right to interfere with the 
sessions of Congress, unless in case of disagreement between 
the two houses, in which case he may adjourn them. 

In this respect, his power is widely different from that of the 
King of Engljgid, who may adjourn or dissolve Parliament at 
his pleasure. 

In what case might the President defeat a bill passed by two thirds of both 
houses 1 

* 3d! Clause. — Where orders, resolutions, &c. require the concurrence of both 
houses, what is necessary in order for them to take effect I When only may 
the President interfere with the- sessions of Congress 1 How (loes his powerj 
In this respect, differ from that of the King of England ? 



UNITED STATES. 63 

SECTION VIII. 

Of the Powers of Congress, 

First Clause. — The Congress shall have power — to 
lay and collect taxes,a duties,^ imposts,c and excises ;<^ 
to pay the debts and provide for the common defence and 

Section 8th. — First Clause. 

The clause divided by the semi-colon, lias been thought by 
some to confer upon Congress two separate powers : one " to 
collect taxes," «Stc. and the other " to provide for the general 
welfare." But it -will hardly bear that construction. The pow- 
er " to collect taxes," was given /or the purpose of providing for 
the general welfare. Consequently Congress has not the power 
" to lay and collect taxes," unless the general welfare require it. 

* Taxes, are all contributions, whether of money or of com- 
modities, imposed 1?y the government, upon individuals, for the 
service of the State. But revenue is the money raised for the 
uses of government, and may be derived frorh various sources, 
as by the sale of public land, &c., or by taxation. Duties, im- 
posts, and excises, are different kinds of taxes. 

^Duties, are taxes required by government, to be paid on the 
importation, exportation, or consumption of goods. 

'^Imposts, are taxes required by government, to be paid on 
goods imported. 

^Excise, is a tax on commodities, wherever found : as, a tax 
on the wares of the merchant, on the produce of the farmer, 
&c. The term excise, in this country, has been applied to a tax 
on domestic distilled liquors ; because this was the only excise 
tax ever imposed by government, and was of short duration. 



Sec. 8th. — 1st Clause. — What powers are conferred upon Congrv. by tha 
first clause of this section 1 How has this clause been construed oy some i 
What are taxes 1 Duties ■? Imposts ? Excises 7 '"^ 



64 CONSTITUTION OF THE 

general welfare of the United States : but all duties 
imposts, and excises, shall be uniform throughout the 
United States. 



This wa^ in- 1793, and the law became so odious as to excite 
to acts of open insurrection, in the neighborhood of Pittsburg, 
Pennsylvania. The display of a military force was necessary 
to quell the insurgents. 

There are two methods of taxation, direct and indirect. By 
the former, the tax is assessed directly upon the individual, in 
proportion to the property which he is known to possess. By 
the latter, the tax is levied upon various goods imported from 
foreign countries, viz : — upon tea, coffee, wines, broadcloths, &c.» 
which taxes the citizen may avoid paying, by not using the 
articles upon which they are imposed. 

There is, however, a diversity of opinion in regard to the 
policy of indirect taxation. It is alleged, in its favor, that the 
people do not feel an indirect tax, and willingly pay it. This, 
however, may be an objection. 

In a republic, the people being the fountain of power, it would 
seem more in harmony with the genius of such a government, 
that the people sjiould know VjJiat they pay, and when and how 
they pay it. 

Indirect ta"':es are not levied in proportion to wealth. A per- 
son worth a lillion of dollars, may avoid paying the tax, by not 
using the article upon which it is imposed, while a poor man 
may pay a greater amount of taxes. 

A portion of the taxes paid by this method, does not accrue 
to the government. By a duty of twenty-five cents per bushel 
on imported wheat, the price of all wheat in New- York is liable 
to be raised twenty-five cents per bushel, and government re. 



What aie the two methods of taxation 1 What is said of indirect taxation 
and what are the objections against it? What object is it sometimes sup- 
posed to accomplish, separate from that of taxation 7 



UNITED STATES. 65 

Second Clause, — To borrow money*on the credit of 
the United States. 

Third Clause. — To regulate commerce with foreign 

ceives only tlie extra price paid upon imported wheat, while the 
consumers pay into the hands of the producers, the extra price 
upon American wheat ; thus one portion of the people is pay 
ing into the hands of another, and not into the hands of govern- 
ment. 

Indirect taxes, therefore, do not fully answer the avowed 
design of taxation. But, by some, they are supposed to answer 
another end, often of greater importance :' — the protection and 
encouragement of domestic industry. Duties upon foreign 
cloths, raise the price of American cloths, and thus give sup- 
port to domestic manufactures. 

And, thus, a duty upon any foreign article of commerce, gives 
better support to that class of citizens who are engaged in its 
production or manufacture. (For the design and effects of jpro^ 
tecting duties see Protecting Duties.) 

Second Clause. 

It is the frugal policy of the government, to tax the people no 
farther than the necessities of the government demand. Hence, 
in case of war, there being no money in the treasury to defray 
the necessary expenses, a resort must be had to taxation, or 
government must have the power of borrov/ing money on the 
credit of the United States. 

This power has been frequently exercised. In 1816, the 
national debt amounted to upwards of one hundred and twenty 
millions of dollars ; but, in 1834, the debt was not only extin- 
guished, but a large surplus revenue had accumulated. 

Third Clause. 
The power to regulate commerce, comprehends the power to 

What power is conferred by the second clause 1 
Whence the necessity of this power 1 
34 Clause. — What power is conferred by the third clause 1 
6* 



66 CONSTITUTION OF THB 

nations, and amofig the several States, and with tha 
Indian tribes. 

regulate navigation, and extends to every species of commercial 
intercourse hetv<;een the United States and foreign nations, and 
among the several States. 

It does not, however, embrace the internal trade between man 
and man, in different parts of the same State ; but Congress may- 
interdict such trade between different States. 

Under this clause, Congress has exercised the power of im- 
posing duties upon foreign goods, for the protection of domestic 
manufactures. 

The exercise of this power by Congress, has been controvert- 
ed by some, as unconstitutional. It is admitted by all, that duties 
fnay be imposed upon any articles whatever, for the purpose of 
revenue ; but some deny the power to impose these very duties, 
if protection is the object. 

It is difficult to see why this distinction should be made. The 
result is the same in both cases, whether the power be exercised 
for the purpose of revenue or protection. All duties imposed upon 
foreign articles create a revenue, and also protect the domestic 
manufacture of these articles. 

If Congress impose duties upon foreign broadcloths, who shall 
^determine the constitutionality of the act ? For Congress has 
only to declare revenue to have been its motive, and it has trans- 
gressed no law. 

It is thought it would be a better rule, to test the constitution. 
ality of legislative acts, by their tendency and obvious effects, 
and not by the motives of the legislators; for the effects of legis- 
lation may be better known than the motives of the legislators. 
And, where the effects are the same, (as they are in these two 
cases,) tbe action must be equally constitutional. 

But the Constitution also gives Congress power " to make all 
laws which are necessary to promote the general welfare," I^ 

What does the power " to regulate commerce" embrace? What kind of 
trade does it not embrace 1 What power has Congress exercised under this 
ciauusQ % What discussion has arisen upon this question ? 



UNITED STATES. 67 

Fourth Clause. — To establish an uinform rule of 
naturalization,^ and uniform laws on the subject of 
bankruptcies,^ throughout the United States. 

therefore, Congress deem the protection of domestic manufac 
tures necessary to promote the general welfare, the Constitution 
certainly gives the power to make laws for that purpose. 

The question relative to such protecting duties, appears, then, 
to be one of policy and not of right. 

An Indian tribe, within the limits of a State, is not consider, 
ed a foreign nation, but is entitled to sue in the courts of tho 
United States. 

Fourth Clause. 

'■Naturalization, is the act by which a foreigner is made a 
citizen. The law by which this is permitted, is called a natw^- 
alization law ; and the acts by which a party avails himself of 
this law, are the naturalization. 

America is believed to be the only country, where a general 
law is enacted for this purpose. In England, and most other 
countries, it may be done, as a matter o? special favor ; but, even 
then, the privilege never extends so far as to make a foreigner 
eligible to the higher offices of State. 

The States have no authority to pass laws of naturalization. 
This is an exclusive power of* the United States. By acts of 
Congress, on this subject, an alien of full age, may become a 
citizen of the United States, after a residence of five years in 
the country, upon complying with certain requisitions, among 
which are, a renunciation of all allegiance to every foreign 
prince and power, and a declaration, on oath or affirmation, that 
he will support the Constitution of the United States. 

The children of naturalized persons, if dwelling within the 
United States, are considered citizens of the United States. 

^Bankruptcy, is the act of becoming a bankrupt. Bankrupt 

How is an Indian tribe, within the hmitsof a State, considered with regard 
to its nationality 1 

Ath Clause. — What powers are conferred by the fourth clause ? What ia 
naturalization 1 May the States pass laws of natural tzation 7 How may aa 



68 CONSTITUTION OF THE 

Fifth Clause. — To coin money, regulate the value 
thereof, and of foreign coin, and fix the standard of 
weights and measures. 

Sixth Clause. — To provide for the punishment of 

and bankruptcy, are legal terms, signifying a particular kind of 
insolvency, or failure to pay one's debts. In common speech, 
one who cannot pay his debts, is a bankjupt ; but it is not so in 
law. Thus, by the law of England, a bankrupt is a trader who 
secretes himself, or does other acts tending to defraud his ere- 
ditors. 

There is now no national bankrupt law. Congress passed a 
temporary bankrupt law in 1800, but the law was repealed in 
1803. In the. absence of a general bankrupt law, the States 
have passed bankrupt laws, which are valid only between the 
citizens of the State by which the law was passed. Should 
Congress pass a general law upon this subject, however, the 
State laws would be void so far as inconsistent with it. 
Fifth Clause. 

The pov/er to coin money, has long been exercised, and the 
Mint department has been established for that purpose. Any 
person ma)?^ bring gold or silver to the mint to be coined, and 
if it be of the standard value, it is, coined free of expense ; other- 
wise, enough is retained^to pay the expense of coinage. 

Congress has not yet passed any general law, fixing the stand- 
ard of weights and measures ; but such a law would conduca 
greatly to the accuracy of trade, and the convenience of com- 
merce. 

Sixth Clause. 

Connected with the power to coin money, and regulate the 
value thereof, Congress has the right " to provide for the punish, 
ment of counterfeiting the securities and current coin of the 
United States." 

alien become a citizen ? W^hat is bankruptcy ? Have we any general bank- 
rupt law 1 How is its place supplied ? 

5th Clause. — W^Jiat powers are conferred by the fiftli clause ? 

Uh Clause —What jiowcrs are conferred by the sixth clause 1 ' 



UNITED STATES. 69 

counterfeiting the securities and current coin of the 
United States. 

Seventh Clause.— To establish post-offices and post- 
roads. 



It is of great importance that the laws regulating the cur- 
rency, should be the same throughout the Union ; and as Con- 
gress legislates for the whole people, the power is most properly 
placed in their hands. 

Seventh Clause. 

To establish post-ofnces and post-roads, means simply, to 
designate any road upon which the mail shall be carried, and 
appoint, in any given place, a post-master. 

Congress have, also, passed laws for the safety and speedy 
transportation of the mail. Of such importance is the speedy 
transmission of the mail considered, that even a stolen horse 
attached to a mail stage, cannot be seized, nor the driver arrest, 
ed on civil process, such as debts, &c., in such way as to obstruct 
the mail ; but the driver may be arrested for.cr breach of the 
peace. 

Under this clause, and that of providing for the general wel- 
fare, has arisen the question of Internal Improvements. Con- 
gress have repeatedly passed laws and made appropriations for 
internal improvements, in the construction of roads, canals, &:,c. . 
and the improvement of water-courses ; but the constitutional 
power has long been a subject of discussion, and is n.ot yet set- 
tled. Legislative authority has invariably been in favor of the 
constitutionality of the power», but the executive has been most- 
ly against it. 

During the administrations of Washington and the elder 
Adams, the subject was little examined, and no executive opiu 



1th CZawse.— "What powers are conferred by the seventh clause ? What isi 
the meaning of the phrase, " to establish post-offices and post-roads 7" What 
Important question has arisen under this clause 1 



70 CONSTITUTION OF THE 

Eighth Clause, — To promote the progress of sci- 
encQ and useful arts, by securing, for limited times, 



ions were formally advanced. Both Mr. Jefferson and Mr 
Madison denied the constitutionaHty of the power, bu>t recom 
meiided the grant of such powers by the States, in the way pro 
vided, by an amendment of the Constitution."^ Mr. Monroe, ir 
his first message to Congress, declared his agreement with hia 
predecessors, but after the passage of a resolution by Congress 
affirming the power, he withdrew his opposition, and during his 
administration appropriations for internal improvements greatly 
increased. 

Mr. John Quincy Adams strongly recommended and encour- 
aged internal improvements ; and during his administration the 
system seemed to have become a part of the permanent policy 
of the country. Mr. Adams admitted the entire constitutionality 
of the power to make internal improvements by the general 
government. 

Thus far, all the Presidents were in favor of the measures 
themselves ; but some were opposed to them on constitutional 
grounds, deeming it unsafe to exercise powers not expressly 
granted. President Jackson, however, not only denied the con- 
stitutionality of the power, but was opposed to the measures 
themselves, upon the ground that the power of appropriating 
money was unsafe and insufficient for tlie successful prosecution 
of national works. 

The Supreme Court has given no direct decision upon the 
subject. It has, however,, decided that a contemporary exposi- 
lion of the Constitution, practised and acquiesced in for a num- 
ber of years, fixes the construction of the Constitution, and the 
Court will not alter or shake it. It has also decided that the»-e 



What were tlie opinions of the various Presidents upon the subject of in 
temal improvements ? What decisions of the Supreme Court seem to affect 
this question 1 



UNITED STATES. 71 

to aathors and inventors the exclusive right to their 
respective writings and discoveries, 

is nothing in the Constitution of the United States which es 
eludes incidental or imphed powers. This would appear t 
show an inclination in the Supreme Court to sustain the powet 
claimed by Congress. The power, although strongly opposea 
by some, has long been exercised, and appears to be sanctioned 
by public opinion. 

Eighth Clause. 

-By acts of Congress, " patents may be obtained for any new 
and useful art, machine, manufacture, or composition of matter 
n-ot known before the application." The term for which a patent 
jnay be obtained is fourteen years. Copy-rights may be secured 
for, twenty-eight years, and at the expiration of that time the 
patentee, or (if he be dead) his wife or children,, may renew ife 
for fourteen years longer. The term for copy-rights was former- 
ly fourteen years, the same as for patents. 

The acts of Congress upon this subject assign to an author or 
his assignee the sole right and liberty of publishing and selling 
Lis work, and to a patentee the full and exclusive right and 
liberty of constructing, using, and selling to others his invention, 
or discovery, within the time limited for the enjoyment of their 
respective privileges. For the violation of a patent, the tres- 
passer must pay,.to the patentee tkree times the actual damage 
proved to have been sustained. The penalty for infringing a 
copy-right is the forfeiture of every volume so printed to the 
author, and the forfeiture of fifty cents for every sheet printed, 
one half to the author, and one half to the United States ; and 
furthermore, to pay the author all the damages which he may 
prove to have sustained. 



Wt Clause. — What powers are conferred by the eighth clause 1 
For what length of time may patent and copy-rights be obtained ? Whal 
jfe the penalties for the violation of patent and copy-rights 3 



72 CONSTITUTION OF THE 

Ninth Clause. — To constitute tribunals inferior to 
the Supreme Court. 

Tenth Clause.— Tq define and punish piracies^ .and 
felonies committed on the high seas,^ and offences 
against the law of nations. 

Eleventh Clause. — To declare war, grant letters of 

Ninth Clause. 
The power given by this clause will be examined under the 
article which relates to the judiciary. 

Tenth Clause. 

a Robbery on the high seas is called piracy. It is the same 
crime which, when committed on the land, is denominated rob- 
bery. Piracy is punished by all nations. But if a foreigner 
acts under the sanction of a national commission, his acts are 
not denominated piracy. In this case the government which 
eanctions liis acts is responsible for the wrong, and not the indi- 
vidual. Tlius the Barbary States are now regarded as lawful 
powers, and not pirates. 

*> The term " high seas" means all the waters of the ocean 
below the boundaries of low water mark, where the tide ebbs 
and fiov/s, although in a roadstead or bay, within the limits of 
one of the States or of a foreign government. Betv.^een high 
water mark and low water mark, the courts of common law and 
of admiralty hold alternate jurisdiction. 

Eleventh Clause. 
In most governments the power to declare war is vested in 
the Executive, particularly in monarchies, where it is generally 

Wi Clause. — What power is conferred by the ninth clause 1 

10th Clause.— What powers are conferred by the tenth clause 1 What is 

piracy 1 What is understood by the " high seas 1" 
11 th Clause. — AYhat pov/ers are conferred by the eleventh clause ? In most 

governments, where is the fiower to declare wai vested 1 

■* ■"■.. 



UNITED STATES. 73 

marque and reprisal,^^ and make rules concerning cap- 
tures on land and water. 

Twelfth Clause. — To raise and support armies ; but 
no appropriation of money for that use shall be for a 
longer term than two years. 



exercised by the sovBreign. It is sometimes said that the power 
of the King of England to make war is nugatory, while the 
people have tlie right of refusing the supplies for carrying it on. 
But it may be said, v/ith much more truth, that the right of the 
people to deny the supplies is nugatory, when the crown has 
involved them in a predicament that, makes consent a matter 
of necessity. But the people of this Repu'blic, jealous of so great 
a. power vested in one man, \A\o might so easily abuse it, have 
given it to Congress, who represent the people, and who, it is 
presumed, will not engage in war needlessly, without the sanction 
of public opinion. 

^Letters of marque and reprisal are commissions to seize the 
persons and property of the members of a nation which has com- 
aiitted some injury, and refuses to make satisfaction. 

Twelfth Clause. 

It is the policy of the govei-nment to keep the standing army 
no larger than is necessary to keep up the forts on the seaboard 
and frontiers, and awe the Indians. The standing army is with, 
in the immediate control of the people, as it can be destroyed 
Vv'henever their representatives refuse appropriations for its sub- 
sistence. 



What is said of the power of the King of England to make war *? 
What are " letters of marque and reprisal V 

Vith Clause. — What power is conferred by the twelfth clause 1 How may 
our standing army be broken up ? 

1 



74 CONSTITUTION OF THE 

Thirteenih Clause. — To provide and maintain a 
navy. 

Fourteenth Clause. — To make rules for the govern^ 
ment and regulation of the land and naval forces. 

Fifteenth Clause. — To provide for calling forth the 
militia to execute the laws of the Union, suppress in- 
surrections, and repel invasions. 

ThirteentJi Clause. 

The United States have long had a large and respectable navyv 
A large navy is more necessary for the protection of our exten- 
sive commerce and' the defence of the Republic than a large 
standing army ; and if we ever engage in war with any Euro- 
pean nation, our commerce will be the first object of attack. 
We should be able to meet the enemy abroad, and not allow him 
to come within our territories. 

History shows us that a large standing army, in the democra- 
cies of the old world, has often been converted to dangerous uses 
in times of civil discord. Fut while the navy is our strongest 
bulwark of defence, it is under so wise a supervision, that there 
is no danger of its being used as an engine of domestic oppress, 
fsion.^ 

Fourteenth Clause, 
The Departments of War and Navy have been established 
for the superintendence of the land and naval forces, and rules 
and regulations for their government and discipline have been 
adopted by Congress. 

Fifteenth, and Sixteenth Clauses. 
Under these two clauses^ and a subsequent one, that the Pre- 

12tk Clause. — What power is conferred by the thirteenth clause 1 What 
is said of the importance of a navy. 
lAth Clause.— What power is conferred by the fourteenth clause? 
15th and IQtJi Clauses.— What powers are conferred by the fifteenth and 



UNfTED STATES. 75 

Sijcteentn Clause. — To provide for organizing, arm- 
ing, and disciplining the militia, and for governing 
such part of them as may be employed in the service 
of the United States, reserving to the States respec- 
tively the appointment of the officers, and the authority 
of training the militia according to the discipline pre- 
scribed by Congress. 

sident shall be commander-in-chief of the militia when called 
into actual service, several questions have arisen : 

1st. Who is to determine when the militia are to be called out, 
the Governors of the States or the President ? 

2d. Can the President place the militia under the command 
of any one but himself? 

3d. Can he detach parts of the militia corps ? 

It has been decided by the Supreme Court of the United 
States that the authority to decide when the militia are to be 
called out belongs exclusively to the President. The power to 
govern the militia, when in the service of the United States, is 
an exclusive one ; but the militia are not to be considered in that 
service until they are mustered at the place of rendezvous, and 
nntil that time their respective States retain jurisdiction over 
ihem, concurrent with the jurisdiction of the general govern- 
ment. 

A State may call forth its own militia, when not in the ser- 
vice of the United States, to suppress insurrections within, or 
repel invasions from its own borders, or to assist the United 
States. 

Upon the two remaining questions, the Supreme Court has 
given no decision. The general opinion, however, seems to be 



sixteenth clauses 1 What questions have arisen under these clauses 1 How- 
has the first question been decided 1 When are the militia considered in the 
sei-vice of the United States 1 What is said of the two remaining ques- 
tions 1 



76 CONSTITUTION OF THE 

Seventeenth Clause.— To exercise exclusive legisla» 
tion,^in all cases whatsoever, over such district (not 
exceeding ten miles square) as may, by cession of par- 
ticular States, and the acceptance of Congress, be- 
come the seat of the government of the United Statesj 
and to exercise like authority over all places purchased 
by the consent of the Legislature of the Stat© in which 
the same shall be, for the erection of forts, magazines, 
arsenals, dock-yards, and other needful buildings. 
And, 



in favor of the power claimed for the President. The ConstL 
tution gives to the President the command of the militia " when 
m the actual service of the United States ;" but the command 
would be almost a nullity without the implied power of delega- 
ting to others either a part or the whole of his authority, or of 
detaching parts of the militia when occasion demanded it. 

Seventeenth Clause. 

Congress has accepted a grant from Virginia a:nd Maryland, 
of ten miles square, for the seat of government, which is the 
present District of Columbia. Over this district, Congress has 
exclusive jurisdiction, and also over other places purchased for 
the uses of the government. The inhabitants of those places 
cease to be inhabitants of the States, and can no longer exercise 
any political rights under the laws of the States. But the States 
have commonly reserved the right of criminal jurisdiction with- 
in the limits of ceded places, as this right maybe exercised con. 
sistently with the jurisdiction of the general government. 



llth Clause. — What powers are conferred by the seventeenth clause ? What 
district has been ceded to Congress 1 What is the extent of the jurisdictiou 
of Congress over all ceded places 1 



UNITED STATES. 77 

Eighteenth Clause,— To make all laws which shall 
be necessary and proper , for carrying into execution 



Eighteenth Clause. 

This clause has given rise to much discussion and great diver- 
S5ity of sentiment. It gives to Congress the power " to make all 
laws which shall be necessary and proper" for carrying into 
execution certain other specified powers. A question arises, 
What laws shall be necessary and proper for these purposes ? 

A national bank has by some been thought necessary to the 
proper administration and regulation of the financial concerns 
of the nation. And if it be necessary for this purpose, argue 
its advocates, its establishment by Congress cannot be unconsti- 
tutional. On the other hand, some of its opponents admit the 
utility of a national bank, but deny its constitutionality, on the 
grounds that Congress cannot exercise any powers not expressly 
granted, and that if the exercise of such implied powers were 
admitted, there would be no limits to the powers of the general 
government. Others, however, deny its constitutionality on the 
ground that it is an unnecessary institution in a financial point 
of view, and that it is pregnant with danger^ owing to its liabil- 
ity to be converted to political purposes. 

A national bank was incorporated in 1791, although with 
much opposition. It received the sanction of Washington, then 
President of the United States, and the weight of his favorable 
judgment. The Secretary of State and the Attorney General, 
(Jefferson and Randolph,) denied its constitutionality, while the 
Secretaries of the Treasury and War, (Hamilton and Knox,) 
agreed with the majorities in Congress in its favor. 

In 1811 the charter of the bank expired, and a majority in 
Congress rejected a bill for its re-charter. In 1816, the curren- 



ISth Clause. — What general power&are conferred by the eighteenth clause 1 
What important question has arisen under this clause 1 Wliat are the argu- 
ments for and against the constitutionality of a national bank 1 When was 

aational bank first incorporated, and what has been its history 1 

7* 



78 CONSTITUTION OF THE 

the foregoing powers, and all other powehs vested by 
this Constitution in the government of the United 
States, or in any department or officer thereof. 



cy of the country having become in a very depreciated condi- 
tion, a new national bank was chartered with a much larger 
capital than the old one. The effect of the establishment of the 
bank was to revive credit, and restore a healthy action to the 
money market. In 1832 a bill for tlie re-charter of the bank 
(the charter of which would expire in 1836) passed both houses 
of Congress, but was rejected by the executive veto of President 
Jackson. 

The Supreme Court has decided — 

1st. That Congress has the nower to incorporate a national 
bank. 

2d. That there is nothing in the Constitution which excludes 
incidental or implied powers ; and, 

■ 3d. That if the,means proposed for the accpmplishment of a 
constitutional object are adapted to the end, and not prohibited, 
they may be constitutionally employed. 

The constitutionality of a national bank is therefore settled 
as far as it can be by the decision of the highest jndicizl tribunal 
in the Union. Its expediency may be questioned, but its vali- 
dity As establisiied while the decisions of the Supreme Court re- 
main unimpaired and the Constitution unviolated. 

Another incidental power claimed and exercised by the gov- 
ernment is to create a priority of payment in their favor in case 
of the death or insolvency of the debtor. Where a company or 
an individual is a debtor to Congress, and becomes insolvent, the 
claims of the United States must be liquidated before those of 
any other creditor. 



What have been the decisions of the Supreme Court upon the subject! 
What other incidental power is claitned by Congress 1 



UNITED STATES. 79 

SECTION IX. 

Of Restrictions upon the Power of Congress. 

First Clause. — The migration or importation of 
such persons as any of the States now existing shall 
think proper to admit, shall not be prohibited by the 
Congress prior to the year one thousand eigbt liundred 
and eight ; but a tax or duty may be imposed on such 
importation, not exceeding ten dollars for each person. 

Second Clause. — The privilege of the writ q? habeas 
■corpus,^ shull not be suspended, unless when, in cases 

Section 9th. — First Clause. 

'The persons here spoken of were slaves, and by this olause 
their introduction was admitted until 180B. In 1815 the slave 
trade was prohibited under severe penalties. Congress has since 
declared the slave trade to be piracy, and that if a citizen of the 
Tlnit'cd States be engaged in it, he shall be adjudged a pirate, 
and on conviction suffer death. The Supreme Court of the Uni- 
ted States, however, has decided that the slave trade is not pira- 
cy by the universal law of nations, nor except so far as it has 
been made so by the treaties or statutes of the nation to which 
the party belonged. The slave trade has been abolished by the 
TJnited States, and by all European nations, and there is not a 
flag of any European power that can now legally cover this 
traffic north of the equator. Vessels, of whatever nation, en- 
gaged in the slave trade, are now liable to seizure and confisca- 
tion. 

Second Clause. 

'^The writ of habeas corpus is a judicial writ, grantable by 
any court of record, or judge thereof, and commands tlie sheriff, 

Sec. 9tB. — 1st Clause. — What is the first clause of section ninth? Who 
were the " persons" liere spoken of? What is the penalty for engaging in 
the slave trade t What has the Supreme Court decided upon the subject 1 
flow is the slave trade eonsidej-ed by other nations ? 



80 CONSTITUTION OF THE 

of rebellion ar invasion, the public safety may re 
quire it. 

Third Clause. — ^No bill of .attainder,^ or eix post facto 
law^ shall be passed. 

or other officer, named in ':K to have or take the body, and bring 
it before said judge or court. 

The object of the writ is, by bringing a person, confined by any 
means whatever, before a competent authority, to have his con- 
finement, and the cause of it, investigated ; and, if it be not 
strictly legal, to discharge him. 

The writ is grantable upon the application of any persors 
whomsoever, on behalf of the prisoner. 

The only attempt to suspend the writ of habeas corpus, was 
made on the occasion of Burr's conspiracy : but it failed in the 
House of Representatives, by a large majority. 

Third Clause. 

^A hilt of attainder, is a special act of the Legislature, in^ 
flicting capital punishments upon persons supposed to be guilty 
of high offences, such as treason and felony, v/ithout any con- 
viction in the ordinary course of judicial proceedings. If it 
anflict a milder punishment, it is called a bill of pains and penal- 
ties. 

^'An ex post facto la^m, is a retrospective criininal law. A 
retrospective law, is one which acts upon things already done. 

An ex post facto law makes something criminal which was 
not criminal when done. Thus, if the Legislature should jmiss 
an act, declaring that all persons who had not attended church 
last year, should be imprisoned, that law would be unconstitu- 
tional, because, ex post facto. 

k 2d Clause.— When only may the writ of " habeas corpus" be suspended ? 
What is the writ of " habeas corpus ?" Has the writ ever been suspended in 
this country 1 

Sd Clause.— What is the third clause 1 What is a "bill of attainder 1" 
What is an " ex post facto law 1" 



UNITED STATES. 81 

Fourth Clause. — No capitation,^ or other direct tax, 
shall be laid, unless in proportion to the census or 
enumeration herein before directed to be taken. 

Fifth Clause. — No tax or duty shall be laid on 
articles exported from any State. 



But if the Legislature should pass an act, that those who had 
attended militia duty last year, should be excused from paying 
taxes, and those who had not, should not be excused, such a law 
would be retrospective, but not ex post facto, because, not crimi- 
nal. An ex post facto law makes past acts criminal, which 
were not so before. 

Fourth Clause. 

»The term^ capitation, here, signifies a direct tax upon indi- 
viduals. Such tax cannot be levied by Congress upon one por- 
tion of the people and not upon another ; but all taxes must be 
uniform among the States. 

If a national tax were to be levied, Congress would apportion 
it among the several States, according to the number of repre- 
sentatives which they were allowed to send to Congress ; and 
each State would apportion its tax among its citizens, according 
to the property possessed by each. ■ 

Thus, Congress would apportion the tax among the States, 
accoi-ding to numhers ; and the States among the citizens, ac- 
cording to property. 

Fifth Clause. 
Duties upon exports can at no time be advantageous to a na- 
tion ; for it is by its exports only that one nation is enabled to 
procure the money or produce of other nations. 

4f7i Clause. — What is tlie fourth clause ? What does the term " capitation' 
here signify 1 How would a national tax be levied "? 

5th Clause. — What is the fifth clause 1 Are duties on exports ever advau 
iageous to a nation 1 



8^ CONSTITUTION OF THE 

Sixth Clause.— ■'No preference shall be given, by any 
regulation of commerce or revenue, to the ports of one 
State over those of another ; nor shall vessels bound 
to or from one State, be obliged to enter, clear, or pay 
duties in another. 

Seventh Clause. — ^No money shall be drawn from 
the Treasury, but in consequence of appropriations 
made by law ; and a regular statement and account 
of the receipts and expenditures of all public money, 
shall be published from time to time. 

Kings, sometimes, resort to duties of this kind, to increase 
their revenue ; but where the people are the rulers, they will not 
thus oppress themselves. 

Sixth Clause, 

Were vessels of one State obliged to pay duties in another, 
the States would be in the relation of foreign nations to each 
other. A diversity of interests would soon arise, and the unity 
of government would be destroyed. 

Sccenth Clause. 

The public moneys are thus placed beyond the reach of the 
Executive, and the people who bear the burdens of taxation, 
have, through their representatives,, the sole power of appi-o- 
priating their own revenue. 

By the regulations of the Treasury Department, the greatest 
fidelity and accuracy are ensured in the disbursement of the 
public moneys. The people have always an opportunity of 
knowing how their money is disposed of. 



6tft CZaMse.--What is the sixth clause 1 Why lis propriety 1 
1th Clause— How only may money b& drawn from the Treasury 1 



UTflTED STATES. 83 

Etghtli Clause,— -No title of nobility shall be grant- 
ed by the United States ; and no person, holding any 
office of profit or trust under them, shall, without the 
consent of the Congress, accept of any present, emolu- 
ment, office, or title of any kind whatever, from any 
«ing, prince, or foreign state, 

SECTION X. 

Of Restrictions upon the Power of the States, 

First Clause. — No State shall enter into any treaty, 
alliance, or confederation ; grant letters of marque and 



Eighth Clause. 
Titles of nobility, and the odious aristocratical distinctions 
found in most governments, are utterly inconsistent with our re- 
publican manners and institutions. This clause, also, guards 
against the possibility of public officers being bribed to betray 
the interests of their country. 

*• ' Section IQth. — First Clause. 

This clause divests the States of the most important attributes 
of national sovereignty. It will be seen in the end, that they 
retain no attributes of national sovereignty ; but are sovereign 
in a municipal capacity only. The terms "letters of marque 
and reprisal," " bill of attainder," and " ex post facto law," have 
already been defined. 



8tk Clause.— What is the law with reference to titles of nobility, and pre- 
sents from foreign states ? 

Sec. 10th. — 1st Clause. — ^What restrictions are placed upon the power of 
the States, by the first clause of section tenth ? 



84 CONSTITUTION OF THE 

reprisal ; coin money ; emit bills of credit ;^ make any 
thing but gold and silver coin a tender in payment of 
debts ; pass any bill of attainder, ex post facto law, or 
law impairing the obligation of contracts ;^ or grant 
any title of nobility. 



'^ Bills of credit, within the meaning of the Constitution, which 
prohibits their emission by the States, are promissory notes, or 
l>ills, issued exclusively on the credit of the State, and designed 
to circulate as money, and for the payment of which, the faith 
of the State only is pledged. 

The prohibition does not, therefore, apply to the notes of a 
State bank, drawn on the credit of a particular fund, set apart 
for the purpose „ 

•"A contract, is an agreement to do or not to do a certain 
thing. If two individuals have formed a contract which is sanc- 
tioned by the lav/s of the State, and the fulfilment of which 
could be legally exacted by either of the contracting parties, 
wen the State cannot declare such contract void, or release 
either party from his obligation. 

Nor can a State revoke what it has once granted away. But 
when the law itself, under which the contract was made, pro- 
vides for the dissolution of the contract, in any prescribed mode, 
the parties are presumed to have»»acted subject to such contin- 
gency ; and when the contingency happens, the obligation may 
be declared void, either in whole or in part, as the original law, 
(under which the contract v/as made,) provided. 

The obligation consists in the law applicable to the contract. 
If, then, the law which permitted the contract, permit the law- 
giver, at any time, to declare it void, the contract is made sub- 
ject to such contingency. 



What are " bills of credit 1" What is a " contract 1" Iii what does ife© 
' obligation" consist 1 



UNITED STATES. 85 

Second Clause. — No State shall, without the con- 
sent of the Congress, lay any imposts or duties on im- 
ports or exports, except what may be absolutely neces- 
sary for executing its inspection laws ; and the nett 
produce of all duties and imposts, laid by any State on 
imports or exports, shall be for the use of the Treasury 
of the United States ; and all such laws shall be sub- 
ject to the revision and control of the Congress. 

Third Clause. — No State shall, without the consent 
of the Congress, lay any duty of tonnage,^ keep troops 
or ships of war in time of peace, enter into any agree- 

Second Clause. 

By this clause, the States can obtain no revenue from com, 
merce by imposing duties upon either imports or exports. 

But the States have inspection laws, under the authority of 
which many domestic articles are inspected before they are sub- 
ject to use or exportation. The States are allowed to lay duties 
upon these articles, sufficient to pay for their inspection. The ' 
object of inspection laws, is to improve the quality of articles 
produced in the country. 

Third Clause. 

* Tonnage duties are taxes laid on vessels, at a certain rate 
per ton. The States cannot keep troops or ships of war, in 
time of peace, for these are attributes of national sovereignty. 
If this power existed in both the general and State governments, 
it would constitute them separate nations ; which would be 
wholly at variance with the object of the Constitution. 



2d Clause. — What restrictions are imposed by the second clause ? What 
are inspection laws, and what is their object 1 

3d Clause.— What restiictions are imposed by the thkd clause 7 What aro 
" tonnage duties 7" 

8 



86 CONSTITUTION Or THE 

ment or compact with another State, or with a foreign 
power, or engage in war, unless actually invaded, or 
in such imminent danger as will not admit of delay. 



ARTICLE II. 

Of the Executive, 

SECTION I. 

First Clause. — The Executive"^ power, shall be vest- 
ed in a President of the United States of America. 
He shall hold his office during the term of four years ; 

First Clause, 

a Executive, is that which relates to the execution of the laws. 
Thus, the chief officer of the government, whether he be called 
King, President, or Governor, is denominated the Executive ; 
for, on him, in most cases, the Constitution imposes the duty 
of executing the laws. 

As it is the duty of the Executive to execute the laws, which 
often requires great decision, secrecy, and despatch, this power 
is better vested in one man than in several individuals. 

The Executive being elected for a definite term of years, if 
his administration be odious, he is, at the expiration of his term 
of office, held amenable at the bar of public opinion, and another 
person may be elected to fill his place. 



1st Clause. — ^In whom is the Executive power vested 1 How long does 
the President hold his office 1 What is the meaning of the term " executive ?" 
Wliy might not the Executive power be placed in the hands of many in- 
dividuals ? 



UNITED STATES. 87 

and, together with the Vice-President, chosen for the 
same time, be elected as follows : — 

Second Clause. — Each State shall appoint, in such 
manner as the Legislature thereof may direct, a num- 
ber of electors, equal to the whole number of Senators 
and Representatives to which the State may be entitled 
in the Congress ; but no Senator or Representative, 
or person holding an office of trust or profit, under the 
United States, shall be appointed an elector.* 

(12t7i Amendment to the Constitution.) — The electors 
shall meet in their respective States, and vote by ballot, 
for President and Vice-President, one of whom, at least. 



It will, hereafter, be seen, that the Executive is made directly 
responsible for his acts, to the representatives of the people. 
So great is the difference between the Executive branch of 
many of the governments of Europe and that of, the United 
States. 

It is a principle of the English law, that " the king can do 
no wrong." His acts are placed above inquiry, and above ac- 
countability. If the king errs, or offends, his ministers are held 
responsible. 

Second Clause. 

As the electors are to be appointed in such manner as the 
Legislature may direct, different States have adopted different 
modes. In some States, the electors are chosen by the Legisla- 
ture itself; in others, by the people. 



* The next clause in the Constitution, was abrogated in the 
year 1801, and the above amendment introduced. 



To whom is the Executive responsible 7 How is it with the Executive 
of th3 English government 1 
2d Clause.— Hovf are the President and Vice-President elected 1 



88 CONSTITUTION OF THE 

shall not be an inhabitant of the same State with them- 
selves. 

They shall name, in their ballots, the person voted 
for as President, and in distinct ballots, the person 
voted for as Vice-President ; and they shall make dis- 
tinct lists of all persons voted for as President, and of 
all persons voted for as Vice-President, and of the num- 
ber of votes for each ; which lists they shall sign and 
certify, and transmit, sealed, to the seat of government 
of the United States, directed to the President of the 
Senate. 

The President of the Senate shall, in the presence 
of the Senate and House of Representatives, open all 
the certificates, and the votes shall then be counted ; 
the person having the greatest number of votes for Pre- 
sident, shall be President, if such number be a majority 
of the whole number of electors appointed ; and if no 
person have such majority, then, from the persons 
having the highest numbers, not exceeding three, on 
the list of those voted for as President, the House of 
Representatives shall choose, immediately, by ballot, 
the President. 

But, in choosing the President, the votes shall be 
taken by States, the representation from each State 
having one vote ; a quorum for this purpose, shall con- 
sist of a member or members from two thirds of the 
States, and a majority of all the States shall be neces- 
sary to a choice. 

And if the House of Representatives shall not choose 
a President, whenever the right of choice shall devolve 
upon them, before the fourth day of March next follow- 



UNITED STATES, ©9 

ing, then the Vice-President shall act as President, as 
in the case of the death or other constitutional disability 
of the President. 

The person having the greatest number of votes as 
Vice-President, shall be the Vice-President, if such 
number be a majority of the whole number of electors 
appointed ; and if no person have a majority, then, 
from the two highest numbers on the list, the Senate 
shall choose the Vice-President : a quorum for the 
purpose, shall consist of two thirds of the whole num- 
ber of Senators, and a majority of the whole number 
shall be necessary to a choice. 

But no person constitutionally ineligible to the office 
of President, shall be eligible to that of Vice-President 
of the United States. 

Third Clause. — -The Congress may determine the 

Third Clause. 

As regards the time of choosing the electors, Congress have 
only enacted that the States shall choose their electors within 
the thirty-four days preceding the first Wednesday in Decem- 
ber. 

The consequence is, that within that time, the elections are 
still made at different periods. It would, doubtless, be better if 
the elections were held by the different States on the same days. 
As it now is, those which are held last, are liable to be more or 
less influenced by those which are held first, upon the principle 
of a common desire in human nature to be on the strong side. 

The electors meet in their respective States, at a place ap- 



2d Clause. — Who determines the time of choosing the electors ? Is tha 
day of choosing the electors the same throughout the States ? What objec* 
tion is there to their present mode of election 1 

8* 



90 CONSTITUTION OF THE 

time of choosing the electors, and the day on which 
they shall give their votes ; which day shall be the 
same throughout the United States. 

Fourth Clause.— No person, except a natural born 
citizen, or a citizen of the United States at the time 
of the adoption of this Constitution, shall be eligible 
to the office of President ; neither shall any person be 
eligible to that office who shall not have attained to 
the age of thirty-five years, and been fourteen years a 
resident within the United States. 

Fifth Clause. — In case of the removal of the Presi- 

pointed by the Legislature thereof, on the first Wednesday in 
December, in every fourth year succeeding the last election, and 
vote by ballot for President and Vice-President. 

Fourth Clause. 

Most of the Presidents heretofore elected, have been more 
than sixty years of age. The age of thirty-five is young enough. 

It is not required that the person elected President, should 
have been within the United States during the vt^hole period of 
fourteen years preceding his election ; but his permanent domicil 
must be there, unless he reside abroad on business of the govern, 
ment. 

A public officer, residing abroad in pursuance of his duty, is 
still considered a resident citizen of the United States, so far as 
his political rights are affected. 

Fifth Clause. 
Congress has provided, that, in case of the removal, death,, 
resignation, or inability of both the President and Vice-President, 

On what day do the electors give their votes ? 

ith Clause. — What qualifications are required for the office of President 1 
What has been the age of most of the Presidents, when elected 1 Must the 
person elected President, have been within the United States during the whole 
j)eriod of the fourteen years preceding his election 1 



UNITED STATES. 91 

dent from office, or of his death, resignation, or inabil- 
ity to discharge the powers and duties of the said office, 
the same shall devolve on the Vice-President ; and the 
Congress may, by law, provide for the case of removal, 
death, resignation, or inability both of the President 
and Vice-President, declaring what officer shall then 
act as President ; and such officer shall act according- 
ly, until the disability be removed, or a President shall 
be elected. 

Sixth Clause. — The President shall, at stated times, 
receive, for his services, a compensation, which , shall 
neither be increased nor diminished during the period 
for which he shall have been elected, and he shall not 
receive within that period any other emolument from 
the United States, or any of them. 

the President pro tern, of the Senate, and in ease there shall be 
no such President of the Senate, then the Speaker of the House 
of Representatives, shall act as President until the disability be 
removed or the vacancy filled. 

In case of a non-election of President and Vice-President, at 
the proper period, Congress has declared that there shall imme- 
diately be held a new election. 

Sixth Clause. 
The salary of^ the President is twenty -five thousand dollars 
per annum, and that of the Vice-President, five thousand dollars. 



5th Clause.— Who succeeds the President, in case of his removal by death 
or otherwise 1 What provisions have Congress made for the case of the re- 
moval of both President and Vice-President 1 If there be no President of the 
Senate 1 In case of a non-election of both President and Vice-President ? 

Qth Clause. — What provision is made relative to the compensation of tlie 
President ? What is his salary ? 



92 CONSTITUTION OF THE 

Seventh Clause. — Before he enters on the execution 
of his office, he shall take the following oath or affir- 
mation :— 

" I do solemnly swear, (or affirm,) that I will faith- 
fully execute the office of President of the United 
States, and will, to the best of my ability, preserve, 
protect, and defend the Constitution of the United 
States." 

SECTION II. 

First Clause, — The President shall be commander- 
in-chief of the army and navy of the United States, 
and of the militia of the several States, when called 
into the actual service of the United States. 

He may require the opinion, in writing, of the prin- 
cipal officer in each of the Executive Departments, 
upon any subject relating to the duties of their respect- 

Section 2d. — First Clause. 

The opinions of the subordinate Executive officei's, are often 
required in matters pertaining to their respective departments. 
As the President cannot have the entire management of all the 
Executive departments, a general supervision over them re, 
quires that he should be allowed to avail himself of the opinions 
of those to whom these departments are more particularly in- 
trusted. 



7th Clause. — What oath is required of the President, before he enters upon 
the duties of his office 1 

Sec. M.—lst Clause.— What powers are vested in the President, by this 
clause 1 Why should the President have the power of requiring the written 
opinions of the heads of departments 1 



tTNITED STATES. 93 

tlve offices, and he shall have power to grant reprieves 
and pardons for offences against the United States, 
except in cases of impeachment. 

Second Clause.— Re shall have power, by and with 
the advice and consent of the Senate, to make treaties, 
provided two thirds of the Senators present concur : 
and he shall nominate, and by and with the advice and 
consent of the Senate, shall appoint ambassadors, other 

Second Clause. 

Helative to the power of making treaties, a question of the 
following nature has arisen : — 

If a treaty be ratified by the President and Senate, and a law 
be required to carry it into execution, may the House of Repre- 
sentatives withhold such law ? 

The House of Representatives once declared, that when a 
treaty depended, for the execution of any t)f its stipulations, on 
an act of Congress, it was the right and duty of the House to 
deliberate on the expediency of carrying such treaty into effect. 

The House of Representatives, however, have subsequently 
decided that the sole power over treaties, rests with the Senate 
and President. This appears, now, to be the prevailing opinion. 

The Constitution has made treaties, when properly ratified, 
the supreme law of the land, and as such, they are binding upon 
the whole nation, and upon Congress also. 

As nations cannot treat together immediately, they must hold 
conferences by means of delegates, or public ministers. 

A public ininister is one who is charged with the care of 

Wliat exception to his power of pardoning 1 

2d Clause. — In whom is vested the power of making treaties ? What 
question has arisen relative to the treaty-making power 1 What right over 
this power did the House of Representatives formerly claim 1 How has 
the question been decided 1 How extensive is the binding power of treaties ? 
What is a " public minister 1" 



94 CONSTITUTION OF THE 

public ministers, and consuls, judges of the Supreme 
Court, and all other officers of the United States, 
whose appointments are not herein otherwise provided 
for, and which shall be established by law ; but the 
Congress may, by law, vest the appointment of such 
inferior officers as they think proper, in the President 
alone, and in the courts of law, or in the heads of 
departments. 

public affairs at a foreign court. Of these, there are several 
orders : — 

1st. An ambassador is one who represents the government, 
and is authorized to act for it on all occasions. 

2d. An envoy is a minister who is sent for a particular pur- 
pose — as, to adjust a special treaty, or arrange disputed boun- 
daries. There are envoys ordinary, and envoys extraordinary 
or plenipotentiary. The former, as the term signifies, are in- 
vested with merely the ordinary powers of an envoy ; the latter 
have full power to act as they deem expedient. 

3d. Ministers resident, or charge d'affaires, are those who 
are charged with the ordinary affairs of a nation at a foreign 
court. 

To each of the a^ove offices, is attached a secretary of lega- 
tion, who performs the duties of a secretary, and is frequently 
left in charge of affairs when a minister is recalled. 

Consuls are commercial agents, appointed to reside in the 
seaports of foreign countries, with a commission to watch over 
the commercial rights and privileges of the nation deputing 
them. 

As the Constitution says nothing about removals from office, 
it has been a question, whether the power of removal is vested in 

What officers are appointed by the President and Senate ? What is an 
" ambassador ? . An " envoy 1" " Ministers resident," or " charge d'affaires V[ 
A " secretary of legation 7" What are " consuls 7" In whom is vested the 
" power of removal" from office 1 



UNITED STATES, 95 

Third Clause. — The President shall havi; power to 
fill up all vacancies that may happen during ihe recess 
of the Senate, by granting commissions, which shall 
expire at the end of their next session, 

SECTION III. 

He shall, from time to time, give to the Congress, in- 
formation of the state of the Union, and recommend to 



the President alone, or in the President and Senate jointly. In 
1789, the question came before Congress, and, after an animated 
debate, the power of the President was affirmed. This decision 
of the House lias long been sanctioned by public opinion. 

Third Clause. 

Should the office of a foreign ambassador become vacant 
during the recess of Congress, the President would have power 
to fill the vacancy ; and the ambassador appointed might retain 
bis office until the close of the next senatorial term. Should 
the President nominate this officer to the Senate, and the Senate 
reject him, the President might, on the first day of the next re- 
cess, appoint him again, to fill the vacancy, and thus perpetuate 
the appointment 

1h.G on\y remedy against this abuse of executive privilege, 
lies in the power of Congress to withhold the appropriations 
which are necessary to sustain the office. But the President 
cannot appoint a foreign ambassador, or other officer, during 
the recess of Congress, unless the vacancy happens during that 
time. 



2d C^awse.— What vacancies may the President alone supply ? How may 
the President perpetuate an appointment made by him 7 What remedy 
against this abuse of Executive privilege 1 



yo CONSTITUTION OF THE 

their consideration such measures as he shall judge ne- 
cessary and expedient ; he may, on extraordinary oc- 
casions, convene both Houses, or either of them, and in 
case of disagreement between them, with respect to 
the time of adjournment", he may adjourn them to such 
time as he shall think proper. 

He shall receive ambassadors and other public min- 
isters ; he shall take care that the laws be faithfully 
executed, and shall commission all the officers of the 
United States. 

Section Zd. 

At the opening of each session, the President lays before Con- 
gress a message, exhibiting the operations of the government 
during the past year, which is accompanied by reports from the 
chief ofiicers of government, illustrating the condition and pros- 
pects 9f tlieir several departments. The President also gives 
his views upon all the measures Vv^hich, in his opinion, ought to 
be acted upon by Congress. 

President Washington, and the eider Adams, in person met 
Congress, and delivered oral speeches, to which answers were 
returned in a similar manner. President Jefferson abolished the 
custom ; since which time, a w^ritten message has been sent to 
Congress, but no answer returned. 

Congress frequently calls upon the President, and upon the 
officers of the different departments, for such documentary facts 
as they may desire. 

The power to call an extra session of Congress, has been 
exercise.d on four different occasions : once by the elder Adams, 
twice by President Madison, and once by President Van Buren. 



Sec. 3d. — \st Clause. — What duties are imposed on the President by this 
section? In what manner is the required information presented to Con- 
gress ? 



UNITED STATES. 97 



SECTION IV. 

The President, Vice-President, and all civil officers 
of the United States, shall be removed from office on 
impeachment for, and conviction of, treason, bribery, 
or other high crimes and misdemeanors. 



ARTICLE III. 

Of the Judiciary, 

SECTION I. 

The Judicial power of the United States, shall be 
vested in one Supreme Court, and in such inferior 

The power to receive ambassadors, includes also the power to 
reject and dismiss them. 

Section \st. 

The Constitution has left the organization of the Supreme 
Court, and the establishment of the inferior courts, to Congress. 

Congress has organized a Supreme Court, by creating a Chief 
Justice and eight Associate Justices, any five of whom make a 
quorum ; and it holds one term annually, at the seat of govern- 
ment. 

Previously to the third of March, 1837, the Supreme Court 
consisted of one Chief Justice, and six Associate Justices, any 
four of whom made a quorum. 



May ambassadors be rejected, and by whom 1 

Sec. 4th. — For what crimes, and in what manner, may civil officers of the 
United States be removed from office ? 
See. 1st.— 'In what is the Judicial power of the United States vested 1 
9 



98 CONSTITUTION OP THE 

courts as Congress may, from time to time, ordain and 
establish. 

The Judges, both of the Supreme and inferior courts, 
shali hold their offices during good behavior, and shall, 
fit stated times, receive for their services, a comp'ensa- 
tion, which shall not be diminished during their con- 
tinuance in office. 



The inferior courts organized by Congress, are the Circuit 
and the District Courts, The Circuit Court is composed of one 
Judge of the Supreme Court and the District Judge, except 
when the District Judge is interested, when it may be held by 
the Circuit Judge. The United States are divided into Circuit 
Districts, and the number of circuits is equal to the number of 
the Supreme Judges. 

The District Court is composed of a single Judge, who holds 
annually four terms, and special courts at his discretion. The 
United States are at present divided into thirty-three districts. 

The Supreme Court is the ultimate tribunal of appeal from 
the Circuit and District Courts, and from the Courts of the 
several States. Its general powers are enumerated in the next 
two clauses. 

The Supreme Court is the national court of the United States ; 
and its jurisdiction is coextensive 'mth national objects, and in- 
dependent of other branches of the government. The Consti- 
tution and laws of the United States are to be construed and 
adjudged of by the -Supreme Court. It is also a sovereign 
arbiter between the States ; which is a sufficient answer to the 
theory that the States have the power to annul the laws of the 
Union. 



How long do the Judges retain their offices t How has the Supreme Court 
been organized 1 What inferior courts have been created ? How are thej' 
organized 1 



UNITED STATES. 90 

SECTION II. 

First Clause, — The Judicial power shall extend to 
all cases^ in law and equity,^ arising under this Con- 
stitution, the laws of the United States, and treaties 
made, or which shall be made, under their authority ; 
to all cases affecting ambassadors, other public min- 
isters, and consuls ; to all cases of admiralty and 
maritime jurisdiction f to controversies to which the 
United States shall be a party -A — 

Although the Supreme Court is the ultimate tribunal in all 
cases, yet it is the judge, and not the lawgiver. Its duty is to 
say what the law is, and not to maJce it. Judicial power as con- 
tradistinguished from the power of the laws, has no existence. 
Courts are the instruments of the law, and can will nothing. 
Section 2d. — First Clause. 

^ The term case, as here employed, means a suit in law or 
equity, instituted according to the regular course of judicial pro- 
ceedings. 

^ Equity, considered as a legal term, is the correction of that 
wherein the law, (by reason of its universality,) is deficient. 
Courts of law are those in which decisions are regulated by the 
known laws of the land ; and courts of equity take cognizance 
of those cases' which either the law, on account of its deficiency, 
does not reach ; or, in which a strict adherence to the law would 
be attended by manifest injustice. 

« The admiralty and maritime jurisdiction of the United 
States courts, embrace all civil and criminal cases where the of- 
fence was committed at sea, or on the coasts, out of the body 
of a county. 

^To enforce the rights of the United States, they have power 

Sec. 2d.— 1st Clause.— To what several cases does the Judicial power ex- 
tend 1 What is a " case," as here contemplated 1 What is " equity V 
What do the "admiralty and maritime" jurisdiction of tlie United States 
courts embrace "? 



100 CONSTITUTION OF THE 

To controversies between two or more States ; be- 
tween a State and citizens of another State ;a between 
citizens of different States ;b between citizens of the 



to sue in their own courts. But neither can an individual -nor a 
State bring a suit against the United States. It is inherent in 
the nature of the sovereignty of the government not to be ame- 
nable to any private person, nor to any State. If the citizens 
are oppressed by the public officers, the remedy lies in the power 
of removing them ; or, if the oppression be in the exercise of 
unlawful and unconstitutional powers, the oppressors are amena- 
ble to the judicial tribunals of the country. 

^The eleventh amendment to the Constitution declares that 
the judicial power does not extend to any suit in law or equity 
prosecuted against a State by individuals. This, however, does 
not apply to a " writ of error," which is not a suit against & 
State within the meaning of the Constitution ; and the jurisdio 
lion of the Supreme Court, in cases arising under the Constitu- 
tion, laws, and treaties of the Union, may be exercised by a writ 
of error brought upon the judgment of a State court. 

A suit is considered as brought against a State, when the 
State is on the record as a party, and is sued in its political ca- 
pacity. To constitute the State a party, it is not sufficient that 
it has an interest in the suit, or that its powers and duties come 
incidentally in question. 

^ The question here is, who is a citizen of a State, and how 
does he change his citizenship ? Every person who is a citizen 
of one State, and removes into another, with the intention of 
taking up his residence there, becomes in reality a citizen of the 



How are the rights of the United States enforced against the States 'I Why 
may not an individual or State bring a suit against the United States 1 
What remedy, then, have the citizens against the oppression of public offi 
cers ■? What does the eleventh amendment to the Constitution declare 1 In 
what case does this not apply 1 When is a suit considered as broughl 
against a State 1 Who are citizens, and how do they change their citiaen 
Shipl 



UNITED STATES. 101 

same State, claiming lands under grants of different 
States ; and between a State, or the citizens thereof, 
and foreign States, citizens, or subjects. 

Second Clause. — In all cases affecting ambassadors, 
other public ministers, and consuls, and those in which 
a State shall be a party, the Supreme Court shall have 
/■.riginal jurisdiction.^ In all the other cases before 
mentioned, the Supreme Court shall have appellate 
jarisdiction,^ both as to law and fact, with such excep- 

State v/here he resides ; and a native citizen of one State never 
ceases to be a citizen thereof till he acquires a new citizenship 

elsewhere. 

Second Clause. 

'^ Original jurisdiction is entire jurisdiction. It is where the 
Supreme Court takes special cognizance of a case which has 
been before no other court. This jurisdiction can be exercised 
only in the cases specified by the Constitution, and cannot be 
enlarged by Congress. But it has been a matter of dispute, 
which is not yet definitely settled, whether this original jurisdic- 
tion is exclusive ; that is, whether it may not be exercised con- 
currently by the inferior United States courts. 

^Appellate jurisdiction is the power of re-examining, and re- 
versing or afiirming the decisions of other courts. The usual 
modes of exercising appellate jurisdiction, are : by Writ of 
Error — which removes nothing for re-examination but the law 
of the case ; and by Appeal — which removes ^ cause entirely, 
and subjects the facts as well as the law to a review and retrial. 

^d Clause.~In what cases has the Supreme Court original jurisdiction 1 
In what cases has it appellate jurisdiction "? What is " original jurisdiction V 
What dispute has arisen upon this subject? What is " appellate jurisdic- 
tion "?" What are the usual modes of exercising appellate jurisdiction ? 
WTiich is tlie most frequently exercised by the Supreme Court, appellate or 
original jurisdiction ? 

9* 



102 CONSTITUTION t»P THE 

tioiis, and under such regulations as the Congress shall 
make. 

Third Clause. — The trial of all crimes, except in 
cases of impeachment, shall be by jury ; and such trial 

It is the appellate jurisdiction which gives to the Supreme 
Court its chief dignity and importance, and renders it an object 
of constant attention and solicitude on the part of the govern^ 
ments of the several States. 

Third Clause. 

In connection with this clause must be taken the fifth and the 
sixth amendment to the Constitution, which will be found in 
their proper places. 

The right to a trial hy jury is esteemed one of the most pre- 
cious rights of freemen, as it enables the accused to appeal from 
the arbitrary judgment of either governments or individuals, to 
the disinterested verdicts of their equals. 

Before a person can be tried for a criminal offence, he must 
first be charged with the offence by a grand jury. This charge 
is in the form of an indictment. 

A grand jury is a number of men, not less than twelve nor 
more than twenty-three, selected from the people in the body of 
the county, to inquire into offences against the State. They are 
instructed by the court in the matters pertaining to their inqui- 
ries, and then withdraw to receive indictments, which are pre- 
ferred to them in the name of the State, but at the suit of a 
private prosecutor. After an examination, such of the bills as 
are found correct, are endorsed, "A true Bill," signed by the 
foreman ; and hence become official accusations, to be rebutted 
only by proof at the trial. These bills are called indictments. 



2d Clatcse. — What is the law regulating the trial of crimes? What pre- 
liminary steps are requisite before a person can be tried for a criminal of 
fence 1 What is a " grand jury 1" 



UNITED STATES. 103 

shall be held in the State where the said crimes shall 
have been committed ; but when not committed within 
any State, the trial shall be at such place or places as 
the Congress may, by law, have directed. 

SECTION in. 

First Clause. — Treason against the United States, 
shall consist only in levying war against them, or in 
adhering to their enemies, giving them aid and com- 
fort. 

Second Clause. — No person shall be convicted of 

It is provided in the fifth amendment to the Constitution, that 
no person shall be twice put in jeopardy of life or limb for the 
same oifenee. The meaning is, that no person shall be a second 
time tried for the same offence, where there has been an actual 
verdict and judgment rendered in a former trial. But the ac- 
cused may be tried a second time, when the jury have been 
dismissed for want of agreement, or where a new trial has hQen 
granted on aecounl of some illegal proceedings, or for want of 
evidence. 

Section Zd. — First, Second, and Third Clauses. 
Death by hanging is the punishment of treason in this eoun- 
try. 



How often may a person be tried for the same criminal offence 1 

What is the meaning of the phrase, " No person shall be twice but in jeo- 
pardy of life or limb for the same offence ?" 

Sec. 3d.— l5i Clause.— In what does treason against the United Stotes con- 
sist"? 

2d Clause.—What is requisite to the conviction of a person charged with 
l;reason'? 

3d CiflM^e.— What is the punishment of treason 1 



104 CONSTITUTION OP THE 

treason, unless on the testimony of two witnesses to 
the same overt act, or on confession in open court. _ 
Third Clause. — ^The Congress shall have power to 
declare the punishment of treason ; but no attainder 
of treason shall work corruption of blood, or forfeiture, 
except during the life of the person attainted. 



ARTICLE IV. 
MISCELLANEOUS. 

SECTION. I 

Full faith and credit shall be given in each State, to 
the public acts, records, and judicial proceedings of 
every other State, And the Congress may, by general 

By corruptictfi of blood, is meant the destruction of all inher- 
itable qualities, so that no one can claim any property, or any 
right to the same, from a person attainted, or through him. In 
England, even the children of a person attainted cannot inherit 
his property, if they are obliged to trace their title through him« 
But these relics of feudal barbarism arc prohibited by our Con- 
stitution. 

Section 1st. 
Foreign judgments in law are considered as prima facie evi- 
dence, that is, are taken as true, until the contrary be proved. 
But domestic judgments, that is, the decisions of courts in the 

What restriction upon tlie penalty for treason ? What is meant by " cor- 
ruption of blood 7" What is the English law upon this subject ? 

Sec. 1st.— What credit is given to the public acts, records, and judicial pro- 
ceedings of the several States 1 Bow are foreign judgments in law considei»- 
edi How domestic judgmental 



UNITED STATES. 105 

laws, prescribe the manner in which such acts, records, 
and proceedings shall be proved, and the effect thereof. 

SECTION II. 

First Clause. — The citizens of each State shall be 
entitled to all privile,<jes and immunities of citizens in 
the several States. 

Second Clause. — A person charged in any State, 
with treason, felony, or other crime, who shall flee from 
justice, and be found in another State, shall, on demand 
of the Executive authority of the State from which 
he fled, be delivered up, to be removed to the State 
having jurisdiction of the crime. 

Third Clause. — No person held to service or labor 
in one State, under the laws thereof, escaping into 
another, shall, in consequence of any law or regulation 



several States, are to oe considered valid and conclusive law in 
every state in the Union, and cannot be denied in another State 
finy more than in the State where they originated. 

Section' '2, d. — First, Second, and Third Clauses. 
The clause relative to persons held to service or labor, refers 
to the slaves of the southern States who may take refuge in the 
non-slaveholding States. Slaves are to be delivered up without 
a full trial, after a summary investigation before a magistrate 
who shall think it probable that the circumstances charged are 



Sec. 2d.— Isi Clause.— What rights are guarantied to the citizens of each 
State by this clause 1 

2d Clause.— How are criminals who flee from one State to another to be 
delivered up? 

3d Clause.— What is the law relative to the escape of slaves from one State 
to another "? Is 3 full trial requisite before the surrender of a slave ? 



106 CONSTITUTION OP TH» 

therein, be discharged from such service or labor, but 
shall be delivered up, on claim of the party to wborn 
such service or labor may be due. 

SECTION III. 

Fii'st Clause. — New States may be admitted by the 
Congress into this Union ; but no new State shall be 
formed or erected within the jurisdiction of any other 
State, nor any State be formed by the junction of two 
or more States, or parts of States, without the consent 
of the Legislatures of the States concerned, as well as 
of the Congress. 

true. Such proof may be either by affidavit or oral testimony, 
and adduced by either the principal or his attorney. 

Section 3d. — First Clause, 

Tiis power to admit new States into the Union, in the manner 
provided by the Constitution, is a new principle in government 
Under the old Confederation no provision of this kind was made, 
for there was then no anticipation of the rapid growth and pros- 
perity of those wild regions, whose population and territory have 
since nearly doubled those of the original States. 

By this provision of the Constitution the United States open 
an asylum for all mankind, and make the whole world partners 
with themselves in an inheritance of liberty, power, and wealth. 
This benevolent principle has no example among nations. 

But the term used in the Constitution relative to the admis- 
sion of new States is may, and not shall. Hence, it is not im- 
perative upon the government of the United States to admit 
new States whenever they may demand it. 

Sec. 3d. — Ist Clause.— Whatis the law regulating the erection and admis- 
sion of new States 1 Is the power to admit new States a long-established 
principle in government? Is it imperative upon the general government to 
admit new States when the latter demand it 1 



UNITED STATES. 107 

Second Clause. — The Congress shall have power to 
dispose of and make needful rules and regulations re- 
specting the territory or other property belonging to 
tho United States ; and nothing in this Constitution 
shall be so construed as to prejudice any claims of the 
United States, or of any particular State. 

SECTION IV. 

'the United States shall guaranty to every BtzM m 
this Union, a republican form of government, and snail 
protect each of them against invasion ; and on appli- 
cation of the Legislature, or of the Executive, (when 
the Legislature cannot be convened,) against domestic 
violence. 



ARTICLE V. 

Of Amendment 
The Congress, whenever two thirds of both houses 

Section 4tk. 
It was necessary for the United States to assume the defence 
of the several States, as the Constitution had already taken 
from the latter the power to keep troops and ships of war, and 
«^xisequently the power efficiently to suppress insurrections. 

Article 5th. 
No amendments can be made except in the manner here point- 

2d Clause.— Whati *r -.r has Congress over the territory and other proper- 
ty of the United States ? 

Sec. 4th.— What form of government, and what protection, are guarantied 
to every State ? Why might not the defence of the States have been left to 
themselves 3 



108 CONSTITUTION OF THE 

shall deem it necessary, shall propose amendments to 
this constitution, or, on the application of the Legisla- 
tures of two thirds of the several States, shall call a 
convention for proposing amendments, which in either 
case shall be valid, to all intents and purposes, as part 
of this Constitution, when ratified by the Legislatures 
of three fourths of the several States, or by conventions 
in three fourths thereof, as the one or the other njode 
of ratification may be proposed by the Congress ; pro- 
vided that no amendment, which may be made prior to 
the year one thousand eight hundred and eight, shall in 
any manner afiect the first and fourth clauses in the 

ed out ; but there are three limitations to the power of making 
amendments : — ■ 

1st. That the clause in the Constitution prohibiting Congress 
from passing any law forbidding the introduction of slaves prior 
to the year 1808, should not be repealed. This restriction was 
introduced as a matter of compromise between the northern and 
the southern States. 

2d. That the mode of levying direct taxes should not be 
changed prior to the year 1808. The Constitution provided, 
that, in apportioning taxes among the States according to their 
population, three fifths of the slaves should be enumerated in the 
census of the population. Consequently, before the year 1808, 
the slaveholding States could not be taxed for more than three 
fifths of their slaves, although Congress should desire it. 

3d. That no State should be deprived, without its consent, of 
its equal representation in the Senate. The small States are 
represented in the Senate equally with the larger ones, and may 
always remain so, unless the smaller States themselves conseat 



How may the Constitution be amended 1 W^hat are the several limitaiioiis 
to the power of making amendments 1 



UNITED STATES. 109 

ninth section of the first article ; and that no State, 
without its consent, shall be deprived of its equal suf.. 
frage in the Senate. 



ARTICLE VI. 

First Clause. — All debts contracted, and engage- 
ments entered into, before the adoption of this Consti- 
tu!ion, shall be as valid against the United States under 
this Constitution as under the Confederation. 

Second Clause. — This Constitution, and the laws of 
the United States, which shall be made in pursuance 
thereof ; and all treaties made, or which shall be made, 

to a change. They are thus effectually and permanently pro- 
tected against all encroachments from the larger States. 

Article Gth. — First Clause. 
During the struggle for independence, the United States con- 
tracted engagements and incurred debts, which many persons 
were apprehensive might not be considered binding upon the 
new government. But it is a law of nations, as well as a prin- 
ciple of justice, that a nation continues bound by all its engage- 
ments, no matter what changes may be made in its government. 
In accordance with this rule, the Constitution has made all 
debts contracted, and engagements entered into, before the adop- 
tion of the Constitution, valid and binding against the United 
States. 

Second Clause. 
In consequence of the supremacy of the Constitution, as here 
set forth, whenever the constitution or the laws of any State 

Art. 6th.— 1s« Clause.— What provision was made respecting the debts 
contracted before the adoption of the Constitution 1 What is the genera] 
law of nations upon this point 1 

10 



110 CONSTITUTION OP THE 

under the authority of the United States, shall be the 
supreme law of the land ; and the judges in every State 
shall be bound thereby* any thing in the Constitution 
or laws of any State to the contrary notwithstanding. 
Third Clause.— The Senators and Representatives 
before mentioned, and the members of the several State 
Legislatures, and all executive and judicial officers, 
both of the United States and of the several States 
shall be bound, by oath or affirmation, to support this 
Constitution ; but no religious test^ shall ever be r&. 

come in contact with it, or in contact with the constitutional 
treaties or laws of the United States ; all judges, whether of the 
State courts or of the United States courts, are bound to give 
effect to the Constitution, and to the acts of the general govern, 
ment, and to declare the State acts invalid, so far as they coma 
in collision with them. 

All constitutional treaties and laws of the United States are 
as binding upon the several States as the Constitution itself. 

Third Clause. 
An oath of similar import is required in all Civilized nations 
from the officers of government. 

» A test act is one which requires all public officers, before 
they can enter upon their duties, to subscribe to certain religious 
opinions, and perform certain religious acts. By the above 
clause this is expressly forbidden in the United States. But in 
most other governments something of this kind is required. 

2rf Clause. — What constitute the supreme law of the land 1 How are all 
Judges bound to act, when the laws of a State come in collision with those 
of the Union 1 

2d Clause. — By what oath are all legislative, executive, and judicial offi- 
cers bound 1 How is it with regard to a religious test 1 What is a ' ' tesS 
«ct1" 



UNITED STATES. 1X1 

quired as a qualification to any office or public trust 
under the United States. 



ARTICLE VII. 

The ratification of the conventions of nine States 
shall be sufficient for the establishment of this Consti- 
tution between the States so ratifying the same. 



Thus, by the statutes of England, all civil and military officers 
are required to make a declaration against transubstantiation, 
partake of the sacrament of the Lord's Supper, and obtain cer- 
tificates of the same, before they can enter upon any such 
office. 

Article 1th 

At the formation of the Constitution there were thirteen 
States, nine of which ratified it immediately, three after the 
lapse of a few months, but the State of Rhode Island not till 
more than a year afterward. Had not all the States ratified the 
Constitution, its authority would have extended only over those 
ratifying the same. 



What religious test is required by the laws of England ? 

Art. 7th.— How many States were required, to ratify the Constitution be- 
fore it took effect ? How many States were there at the time of the forma- 
tion of the Constitution "? Would the Constitution have been binding up<Hl 
aay State which did not assent to it ? 



112 CONSTITUTION OF THE 



OF AMENDMENTS. 



When the Constitution was submitted to conventions of the 
people, called for that purpose, it met with violent opposition 
from many, and numerous objections were urged against it. 
The most important objections were those against the great 
power with which it invested the general government ; and the 
fear that the influence of the States would be greatly impaired, 
if not altogether destroyed, by the supremacy of the Union. 

The Constitution was, however, ratified by the requisite num- 
ber of States, and Congress, during its first session, proposed 
ten distinct articles, selected from those which had been sug- 
gested in the State Conventions, which, having been ratified in 
the manner provided, are now a part of the Constitution. Two 
other amendments have since been added. 

The general design of the amendments was to secure certain 
rights to the States and people, beyond the possibility of en- 
croachment by Congress ; and to set a more definite limit to the 
powers of^the general government. 



What were the most important objections urged against the Constitution 1 
How many amendments have been added to the Constitution 1 . Wliat was 
their general design 1 



UNITED STATES. 113 



AMENDMENTS. 



Article I. — Congress shall make no law respecting 
an establishment of religion, or prohibiting the free 
exercise thereof; or abridging the freedom of speech, 
or of the press ; or the right of the people peaceably 
to assemble, and to petition the government for a re- 
dress of grievances. 

Article I. 

Although the imposition of any religious test had already been 
prohibited by the Constitution, yet such was the solicitude of 
the people on this point, such their determination to preserve 
the utmost freedom of conscience, that it was deemed proper 
to deprive Congress of all pretence for ever attempting to legis- 
late upon the subject of religion. The government offers no 
hindrance to any, while it affords protection to all religious 
sects. 

The terms " freedom of speech and of the press," mean the 
right to speak and publish whatever is not in derogation of pri- 
rate rights. But no one has a right to speak or publish what 
will injure another ; — hence the law of slander and libel. 

The right of the people to assemble, either to petition or for 
any other purpose, arises necessarily from the form of a rejiub- 
lican government. 

Art. 1st.— What restrictions are placed upon the power of Congress by 
Art. 1st ■? What is the meaning of the terms " freedom of speech and of the 
press 1" 

10* 



114 CONSTITUTION OF THE 

Art. II. — A well-regulated militia boing necessary 
to the security of a free State, the right of the people 
to keep and bear arms shall not' be infringed. 

Art. III. — No soldier shall, in time of peace, be 
quartered in any house without the consent of the own- 
er, nor in time of war but in a manner to be prescrib- 
ed by law. 

Art. IV.^ — The right of the people to be secure in 
their persons, houses, papers, and effects, against un- 

Article II. 
' The term " militia" is applied to that species of soldiery which 
is composed wholly of enrolled citizens held ready for service, 
but not actually under arms. 

Article III. 

This article is intended to guard against the tyranny which 
arbitrary governments have soihetimes exerted, by keeping large 
numbers of troops quartered upon the peaceable citizens, to watch 
over their motions and hold them in subjection. 

The people of this country, while under the dominion of Eng- 
land, had felt, too sensibly, the evils arising from the want of 
arms, and the presence of foreign troops, not to take every pre- 
caution against their recurrence. 

Article IV. 
The power of an officer to arrest and imprison any one at his 
discretion, has often been an engine of great oppression under 



Art. 2(1.— What is the second amendment ? To what is the term " militia" 
applied 1 

Art. 3d.— What is the third amendment 1 For what was this article par- 
ticularly intended 1 

Art. 4th.— What is the fourth amendment 1 For what was this article 
particularly designed 1 



UNITED STATES. llo 

reasonable searches and seizures, shall not be violated, 
and no warrants shall issue but upon probable cause, 
supported by oath or affirmation, and particularly de- 
scribing the place to be searched, and the persons or 
things to be seized. 

Art. V. — ^No persons shall be held to answer for a 
capital, or otherwise infamous crime, unless on a pre- 
sentment or indictment of a grand jury, except in cases 
arising in the land or naval forces, or in the militia, 
when in actual service in time of war or public danger ; 
nor shall any person be subject, for the same offence, 
to be twice put in jeopardy of life or limb ; nor shall 
be compelled, in any criminal case, to be a witness 
against himself, nor be deprived of life, liberty, or pro- 
perty, without due process of law ; nor shall private 
property be taken for public use without just compen- 
sation. 

Art. VI.— In all criminal prosecutions, the accused 
shall enjoy the right to a speedy and public trial, by an 
impartial jury of the State and district wherein the 
crime shall have been committed, which district shall 
have been previously ascertained by law, and to be in- 



arbitary governments. This article was designed to prevent the 
possibility of such a practice here. 

Amendments 5th, 6th, and 7th, have already been considered 
in connection with another part of the Constitution. 



Art. 5th.— V\/Tiat provisions are made in this aiticle to guard against vio- 
lations of personal liberty and private rights 1 

Art. 6th.— What privileges are here given to individuals, in criminal pro- 
secutions against them 1 



116 eONSTITUTKN OP THE 

formed of the nature and cause of the accusation ; to 
be confronted with the witnesses against him ; to have 
compulsory process for obtaining witnesses in his favor, 
and to have the assistance of counsel for his defence. 

Art. VII.— In suits at common law, where the 
value in controversy shall exceed twenty dollars, the 
right of trial by jury shall be preserved, and no fact 
tried by a jury shall be otherwise re-examined, in any 
court of the United States, than according to the rules 
of the common law. 

Art. VIII.— Excessive bail^ shall not be required 
nor excessive fines imposed, nor cruel and unusual pun- 
ishments inflicted. 

Art. IX,-— The enumeration, in the Constitution, of 



Article VIII. 

^ Bail is a term used for setting at liberty one arrested, on 
surety being given for his appearance at the time and place ap- 
pointed. 

What must be determined excessive bail or excessive fines, 
must be determined by the proper judge or court in each par- 
ticular case, since what would be excessive bail in one case, 
would be extremely moderate in another. The design of the 
article is, therefore, to declare, in general terms, that bail is to 
be taken, and fines imposed, for the purpose of justice, and not 
as means of oppression. 



Art. 7tli.— What is the seventh amendment "? 

Art. 8th.— What is the eighth amendment!" What is" bail 1" What 
must be considered " excessive bail," and " excessive fines 1" 
Aet. 9th.— What is the ninth amendment^ 



UNITED STATES. 117 

certain rights, shall not be construed to deny or dis- 
parage others retained by the people. 

Art. X. — The powers not delegated to the United 
States by the Constitution, nor prohibited by it to the 
States, ase reserved to the States respectively, or to the 
people. 

Art. XI. — The judicial power of the United States 
shall not be construed to extend to any suit, in law or 
equity, commenced or prosecuted against one of the 
United States by citizens of another State, or by citi- 
zens or subjects of any foreign State. 

(Article twelfth, of the Amendments, relating to the 
choosing of President and Vice-President, will be found 
under the head of" Executive.") 

Article IX. 

This article is designed to affirm, that, although the Constitu- 
tion had enumerated certain rights as belonging to the people, 
yet it did not design to affirm that the people should retain no 
other rights than those expressly reserved to them. It shows 
the care with which the people guarded against any unauthor- 
ized extension of the power of the general government. 

Article X. 

As the Constitution derives all its power from the people, it 
consequently follows that all authority which is not thus dele- 
gated, remains with the people, the original source of power. 

(Amendments 11th and 12th, have already been considered 
in their appropriate places.) 



Art. 10th. — What is the particular design of this article 1 
Art. 11th. — What is the tenth amendment ? 
What is tjje eleventh amendment 1 



w 



\ 



^^. BOOK IL 

FXEMSNTS 



OT' 



POLITICAL ECONOMi^. 



iNTRODUCTION. 



Political Economy is the science of wealth. It 
treats of the principles and laws which govern its cre- 
ation ; of its course and order of distribution ; of its 
uses ; and, also, of the consequences resulting from 
these several circumstances. 

Valite, is that particular quality in a substance which 
renders it capable of gratifying human desire. For 
example, that quality in food which gives it value, is 
its capacity to gratify the desire of hunger in man. 
Different substances possess different degrees of value, 
which depend upon the nature and the number of desires 
which they can gi-atify. 

Such articles as food, clothing, <Sz;c., which gratify 
necessary desires, have more intrinsic value than those 
which are mere articles of luxury and amusement, 

India rubber was formerly used for but one purpose ; 
— that of rubbing out pencil marks ; but it is now 
used for the manufacture of shoes, and for many other 
important purposes. Its value, therefore, has been 
greatly increased. 



What is political economy 1 
What is value 1 

Upon what do the degrees of value indifferent substances, depend ? Ex- 
ample? 

11 



122 INTRODUCTJONc 

Wealth, then, consists of all articles of value ; and 
the wealth of an individual is proportioned to the 
amount of value that he possesses ; or, to the number 
and importance of the desires which his possessions will 
enable him to gratify. 

If a person possesses a large amount of money, ha 
is considered wealthy, because the money will enable 
him to gratify numerous and important desires. But 
if a person could gratify all his desires without the use 
of money, simply by a wish or a command, he would 
be as wealthy as man could be, and money would no 
longer be valuable to him. 

Some substances, such as air, water, and sunlight, 
are capable of gratifying desire, without any change 
being made in them ; but not so with gold, silver, 
iron, &c. ; yet the latter also possess value. The 
value of the former is intrinsic. The latter may be 
exchanged for articles which have intrinsic value. 

There are, then, two kinds of value, intrinsic and 
exchangeable. Exchangeable value, is the power of 
one article to obtain something else in exchange for 
it. Gold has little intrinsic, but great exchangeable, 
value : air has vast intrinsic, but no exchangeable, 
value. Yet all articles that have exchangeable value, 
have some intrinsic value. 

Those which have no exchangeable value, are found 
every where abundant, and inexhaustible, and are 



What is wealth, and to what is the wealth of an individual proportioned 1 
How many kinds of value are there 1 Examples 1 
What is exchangeable value 1 



INTRODVCTION. 123 

derived directly from the gift of the Creator : such 
are the light of the sun, air, water, &;c. The others 
derive their chief value from human tabor, and aie 
limited either in quantity or in place. 

But, as articles of exchangeable value derive that 
value chiefly from human labor, they will be found in 
the possession of those who have exerted the labor 
ppcessary to produce them. But he who makes knives, 
will not part with them without a compensation for 
his labor. Hence, he who wants knives must either 
make them himself, or he must offer in exchange for 
them some value which he himself has created, or which 
he possesses. 

Cost is the amount of labor and skill expended in 
the creation of value, and it is the cost of an article 
which, for long periods, determines its exchangeable 
value. When the degree of skill is the same, no man 
will exchange the products of two days' labor for that 
which has cost another man but one day's labor. 

If a hunter procure twenty-five pounds of venison 
by a day's labor, and a fisherman one hundred pounds 
of fish, they will exchange labor for labor, and not 
pound for pound. If the hunter demand one hundred 
and fifty pounds of fish for twenty-five pounds of ven- 
ison, the fisherman will not exchange in this rianner- 
for he can better afford to hunt his own venison. 



How do articles which have no exchangeable value, differ from those 
Tirhich have exchangeable value "? 
Where will articles of exchangeable value be found, and how obtained ? 
What is cost 7 
What determines the exchangeable value of articles 1 



124 INTEODUCTION. 

But temporary circumstances may, for short peiiods, 
create a variation from this standard, and elevate the 
exchangeable value above, or depress it below, the cost. 
The causes of this variation we will now briefly illus- 
trate : — 

1st. If, during on» season, a larger quantity qf flour 
were carried into the city of New-York than was suf- 
ficient to supply all demands for the article, the price 
of flour would fall ; that is, the less amount of other 
articles would a barrel of flour obtain by exchange. 

And this effect would be the same, although a barrel 
of flour cost no less this year than in the year previous. 
Hence, the greater the supply, the less the exchangeable 
value, 

2d. If, while the cost of producing flour remained 
the same, only half that was necessary to supply the 
demand were carried to market, the price of flour would 
rise : and hence, the less the supply, the greater the 
exchangeable value, 

3d. Suppose that, on account of the high price offer- 
ed for flour in some foreign country, it should become 
profitable to export it from New- York ; the great de- 
mand for flour would immediately raise the price i 
hence, the r< eat&r the demand, the greater the exchange- 
able value. 

4th. Suppose that the demand for flour in New-York 
should suddenly decline, while there were large quan- 



How illustrated ? 

The cost of production regulating exchangeable value, ■what circurastancejf 
occasion a variation from this standard 1 
Jiiustrate the causes of this variation. 



INTRODUCTION. 125 

titles in market ; the holders would, nevertheless, wish 
to dispose of their flour, and hence, there would arise 
a competition among them, each one striving to sell : 
the price of flour would, consequently, fall : conse- 
quently, the less the demand, the less the exchangeable 
value. 

These principles operate to keep the supply of an 
article, usually, equal to the demand. This, in par- 
ticular, is the case with regard to manufactured articles. 
Thus, in cities, the supply of hats, shoes, &;c., is al 
ways equal to the demand for them. If more hats are 
manutactured than are sufficient to supply the wants 
of the community, the increased supply of the article 
reduces the price below cost, and the manufacture of 
hats ceases until the supply becomes equal to the de- 
mand. 

Also, if there is not a sufficient number of hats pro- 
duced to supply the demand, more persons engage in 
their production, until the supply rises equal to the 
demand. Hence, also, we see why a scarcity is likely 
to be followed by an excess, and high prices by low 
prices. 

If there be a great scarcity, the high price of the 
articles induces many persons to engage in their pro- 
duction, and a surplus of the article, and a fall in price, 
are the consequence. 

Articles which will soon perish if undisposed of, are 
subject to greater fluctuations in exchangeable value 



What is the effect of these principles ? 

What articles are subject to the greatest fluctuations iu exChangeabia 
yalue 1 

11* 



126 INTRODUCTION. 

than those of more durable materials. Fish and fruits, 
if kept on hand, will soon perish, and the holder will 
dispose of them for less than their cost, rather than 
lose them. 

But iron, being a durable article, will not be subject 
to such variations ; for, although it be kept on hand 
for years, it will lose none of its intrinsic value. 

Also, articles which require a long time for theif 
production, are subject to greater variations in ex 
changeable value, than articles which may be pro- 
duced on demand. Thus, if there be a scarcity of 
wheat in the country, the price of that which remains 
will rise rapidly. 

But if there be a scarcity in the article oi nats, the 
price will not rise so rapidly, because every person 
knows that the demand may be supplied upon short 
notice. 

The subject ot political economy may be divided 
into four parts : — production, distribution, exchange, 
and consumption. 



What other articles are subject to like fluctuations 1 
How may the subject of political economy be divided 1 



PART FIRST. 



OF THE PRODUCTION OF WEALTH. 



Pkoduction is the act by which v/e confer a par- 
ticular value upon any object whatever, or by which 
we give to any object its adaptedness to gratify desire- 

For example : — the miner of iron takes the ore from 
the earth, and, by his labor, converts it into a knife 
thus giving it a value which it did not possess before* 
This process, — the creation of value, is called produO' 
tion. The person who performs the labor, is called a 
jjroducer, and the article which is produced, viz., the 
knife, is called a product. 

The material upon vv^hich labor or industry is ex- 
erted, is called capital. Thus, in the above case, iron 
ore was the capital. But the same article may, some- 
times, be the product of one person, and the capital of 
another. Thus, leather is the product of the currier, 
and the capital of the shoemaker. 

But, the term capital is not applied to the material 
only, upon which industry is to be exerted, but also to 
the instruments by which industry is assisted, and also 



What is production 1 Example 1 
To what Is the term capital applied 



•^ 



128 OF PRODUCTION. 

to whatever is necessary to the support of that in- 
dustry. 

Thus the capital of the shoemaker, comprises his 
leather, his tools, the provision for his support, &c. ; 
and, in fine, it is whatever of value or property he pos- 



The subject of production, may, therefore, be divided 
mto three parts : — -Ist. Capital ; 2d. Industry ; and^ 
3d. The principles which govern the application of in- 
dustry to capital. 

SECTION I. 

Of Capital, 

As capital is the amount of value, or property, whicfe 
each man possesses, capital appears in as many forms 
as there are various employments of menc Thus, the 
farmer, the manufacturer, and the merchant, possess 
capital in as many forms as they have articles of 
value* 

lu every industrious community, capital is continu- 
ally undergoing changes, by the effect of labor exerted 
upon it. The cotton and wool of the manufacturer,, 
are changed into the fabrics which he produces. The 
wood and nails of the carpenter, are changed into 
houses. The seed and manures of the farmer, are 
changed into vegetables, and these again into the grain 
of the harvest. 



How may the subject of production be divided ? 
What Is capital, and in what form does it appear ? 
What is said of tho changes which capital undergoes? 



OF PRODUCTION. 129 

The merchant exports one commodity, and imports 
another of a different kind. Also, the instruments and 
machinery of the several classes of laborers undergo 
changes, and are finally destroyed ; but if they have 
been properly used, their value reappears in another 
form, — in the increased value which they have given 
to the various objects upon which they have been em- 
ployed. 

If the labor has been skilfully directed, the value of 
the product will be sufficient to replace the value of 
the original material, and also to pay the laborer, and 
pay the interest of the capital. Capital often passes 
through maay hands, continually increasing in value, 
until it reaches the hands of the consumer, when, if it 
be profitably consumed, it again reappears in some form 
adapted to create a further increase of the means of 
enjoyment. 

Thus, wheat passes from the hands of ..the farmer to 
those of the miller, then to the merchant, and thence 
to the consumer ; but, if profitably consumed, its value 
reappears in reanimated health and vigor, by which 
we are prepared for subsequent labor. 

But, if we destroy a value, and produce another only 
equal to it, we lose our labor. If we destroy a value, 
and reproduce nothing, we lose both labor and capital. 
If the value created be superior to the value of labor 
and capital destroyed, we are so much the more 
wealthy. 



If the labor required to effect the change be skilfully directed, what will be 
the result 7 If otherwise 1 



J 30 ^ OF PRODUCTION. 

Hence, to add to our wealth, our labor must be pro- 
fitably employed, — we must be industrious in creating 
value, and frugal in the disposal of it. 

Of the different kinds and forms of capital, there 
may be made two divisions ; productive, and unproduc- 
tive, capital. 

"Pi'odiictive capital is that which, being in any 
manner united with industry, is in the process of aug. 
mentation. Unproductive capital is that which, not 
being .united with industry, remains at the end of the 
year just as it was at the beginning. Money at inter- 
est, tilled land, and manufactories in operation, are 
productive capital. Money lying in coffers, unsaleable 
materials, manufactories unoccupied, and land lying 
waste, are unproductive capital."^ 

In all branches of production where there are no 
restrictions upon the use of capital, the rate of accu- 
mulation is nearly the same. For if one kind of busi- 
ness be unusually lucrative, capital will flow into it, 
and men will engage in it, until, by competition, they 
reduce the profits to the ordinary rate. If commerce 
be unusually lucrative, more men will engage in it ; 
and if it be depressed, they will devote themselves to 
other pursuits. 

Nothing but oppressive legislation can render the 
rates of profit permanently unequal. In some parts 

a Wayland. 

What are the principal divisions of capital 1 
What is productive capital ? Unproductive capital ? 
Where capital and labor are free, does the rate of accumulation vary grc^ 
ly in different branches of production 1 Why not 1 



OP PRODUCTIOEf. 131 

of Asia the son must follow the calling and occupation 
of his father, v/hether the business be profitable or not. 
Such restrictions upon industry can be attended by no 
benefits, but almost incalculable evils often flow from 
them. 

Capital may also be still further divided into fixed 
and circulating capital. 

Circulating capital comprises those articles of value 
which the owner wishes to dispose of as soon as pi-o- 
duced. Thus, the v/ares of the merchant, the products 
of the manufacturer, and the harvests of the farmer, 
are circulating capital. 

Fixed capital comprises those articles of value which 
the owner does not wish to part with while he continues 
his occupation^ but the use of which he needs in the 
creation of other products. Thus, the ships and ware- 
houses of the merchant, the machines and buildings of 
the manufacturer, and the tools and land of the farmer, 
are fixed capital. 

Moreover, circulating capital consists of those arti- 
cles which are already prepared for the gratification of 
human desire, or which are in a course of preparation 
for that purpose ; while fixed capital, in general, con- 
sists of the instruments which, in some form or manner, 
assist us in accomplishing this result. Money must 
therefore, be called fixed capital, because it cannot, di- 



How may capital be still further divided 1 

What is circulating capital 1 

W^hat is fixed capital ? 

Does circulating capital require any further change before it can gratify de- 
sire? , . 
. What kind of capital, then, is money 1 



182 OF PRODUCTION. 

rectly, gratify desire, but is subservient to this purpose, 
only by its utility in facilitating the exchange of other 
articles of value. 

Circulating capital is rapidly consumed by its use 
in gratifying desire ; while fixed capital may last for a 
length of years. If fixed capital be properly used, it 
increases the amount of circulating capital, and vice 
versa. Thus, the fixed capital of the farmer, if skil- 
fully used, increases the amount of his produce, or cir- 
culating capital. The avails of his produce he applies, 
in part, to the gratification of his wants or desires, 
and in part to the increase of his fixed capital, by the 
purchase of more land, the erection of buildings, the 
improvement of his tools, &c., by which he is enabled 
again to increase the amount of his circulating capi- 
tal : and thus they go on, year after year, mutually 
ai%menting each other. 



SECTION II. 

Of Industry, 

I. The object of industry is the creation of value. 
We have seen that capital can be increased only by 
effecting some change in it, and it is evident that this 
change must be produced by labor. 

Different changes are required for different kinds ot 



Which is the more rapidly consumed, circulating or fixed capital ? 
How does the use of fixed capital increase circulating capital 1 
What is the object of industiy % 

What is the only manner in which capital can be increased ? 
What changes are required 1 



OF PRODUCTION. 133 

capital, and for the creation of different products. 
Thus, the farmer, by means of seed, manure, and cul- 
tivation, aided by the agencies of the sun, earth, rain, 
and the atmosphere, changes the elementary forms of 
carbon, gases, and water, into wheat. Merchants and 
manufacturers are generally employed in effecting 
changes in the aggregate forms of matter. Thus, the 
cabinet-maker changes the form of a board into that of 
a desk or a table. Others change the 'place of matter. 
Thus, the importer brings goods from abroad, the mer- 
chant carries them into the country, and the farmer 
transports his produce to market. 

Hence the necessity of different professions and dif- 
ferent occupations ; which all concur in the creation 
of value. They mutually support ea"ch other, and 
there is no reason for jealousy between different classes 
of producers ; — if left to themselves, they all flourish, 
and all suffer, together. The farmer requires the tools 
and instruments made by the mechanic, the cloths of 
the manufacturer, and the wares of the merchant ; and 
if the business of the latter be obstructed, the former 
suffers with him. Thus it is with ail : — they are mu- 
tually dependant upon each other. 

The industry above alluded to, which is requisite to 
effect a change in matter, may be called the industry 
of operation, or, operative industry. The laborers in 
this department of industry are those who, guided by 



Why the necessity of different professions 1 
What is said of their mutual dependance upon each other 1 
What is "operative industry," and who are the laborers in t^iis depart- 
ment ; 

12 



134 OF PRODUCTION, 

certain directions, put forth the physical effort neces- 
sary to create the values desired. Such are the mere 
operatives, ot workmen, in the arts. But, before this 
kind of industry can be exerted, there must be some 
persons who are able to give the necessary directions ; 
for labor exerted without design or object, will be at- 
tended with no utility. 

Hence there is need of two other kinds of industry. 

First— The industry of discoverers or investigators, 
who ascertain the laws or the established relations of 
things ; — such as the industry of Newton, when he 
discovered the laws of gravitation ; and of Franklin, 
when he discovered the laws of electricity. The labor 
of philosophers belongs to this class. 

Secondlyr^r-The industry of inventors ; or those who 
avail themselves of the knowledge acquired by discov- 
erers, and apply it to some practical purpose. Thus 
Fulton, knowing the laws of steam, which had been 
previously discovered, applied them to the purpose of 
propelling vessels through the water. Under this class 
may also be comprehended professional labor generally. 
The clergyman teaches us how to avail ourselves of 
the moral laws of the Creator. The lawyer teaches 
us how to avail ourselves of the laws of civil society, 
for the purpose of protecting our rights and redressing 
our grievances. The physician teaches us how to 
avail ourselves of the physiological laws under which 



What is requisite before this industry can be exerted 1 

What other kinds of industry 1 Explain them. 

Under which kind of industry may professional labor be ranked,? 



OF PRODUCTION. 135 

we are created, so that we may be relieved from sick- 
i»ess or preserved in health. 

Two or three of these forms of industry are fre- 
quently performed by the same person. Thus, Frank- 
lin performed the labor of the discoverer when he 
discovered the laws of electricity ; he performed the 
labor of the inventor, v/hen he applied those laws to 
the construction of the lightning rod ; and he would 
also have performed the labor of the operative, or ar- 
tisan, if ho had constructed the rod with his. own 
hands. 

The product of operative industry is a change of 
form or of place in matter ; while that which the dis- 
coverer or inventor creates, is an immaterial product. 
It is knowledge, or a change effected in mind. Politi- 
cal Economy treats almost exclusively of material pro- 
ducts, because the values of the products of discoverers 
and inventors, being immaterial, can be adjusted by no 
fixed rule. 

The exertion of operative industry confers upon the 
laborer, either wholly or in part, a right to the value 
produced ; and i\iQ extent of this right can be easily 
knov/n and enforced where the product is material. 
Thus, the operative manufacturer who receives wool, 
the product of the wool grower, and manufactures it 
into broadcloth, acquires a right to the additional value 
which he has conferred upon the wool ; and this addi- 



Are the, diiferent kinds of industry ever performed by the same person? 
Example ? 
What is the product of opevative industry ? Of inventive industry 7 
Of what does political economy n .'most exclusively treat"? 



136 OF PRODUCTION. 

* tional value being easily known, the right to it can be 
easily enforced by seizing upon a material product. 

But in this respect there is a broad difference be- 
tween the products of operative industry, on the one 
hand, and the products of discr /ery and avention, on 
the other» 

Although discoveries in science, and inventions in 
the arts, may demand both expensive and protracted 
labor, yet those who create knowledge have little means 
of monopolizing it, because the value produced resides 
in 210 tangible objecl 

Ths discoveries of Locke and Bacon in the sciences, 
have been of inestimable value to mankind, but the 
discoverers could realize only a small share of the 
profits accruing therefrom, because the values produced 
being immaterial and intangible, and easily conve;^ ed 
to others by means of the press, and thus inimitably 
increased, soon cease to possess any exchangeable 
value. But civil society has devised means by which 
laborers in llie last two mentioned kiLdfs of industry 
im.y receive some remuneration for their labor. The 
laws of copy and of patent right, by which uuthors 
and inventors are entitled, for a limited time, to the 
exclusive control over their works, are designed for this 
purpose. 

But there is need of laborers in each of these depart- 
ments of industry. A community in which there were 



Are the products of inventive industry easily monopolized'? 
What laws are designed to remunerate inventive industry ? 
What is said of the importance of laborers in all tht lepartments of in 
dustry 1 



0? PRODUCTION. 137 

.30 discoverers or inventors, if isolated from the rest of 
mankind, would remain stationary in civilization and 
the arts. 

It would be a mere machine, which had the power 
to execute, but not the mind to direct : like the steam 
engine, which, if combined with proper machinery, and 
properly directed, is productive of the most useful re- 
sults ; but whose power, if left to itself, is vainly dis- 
sipated or ruinously exerted. 

And, on the other hand, were the community com- 
posed entirely of philosophers, inventors, and profes- 
sional men, whose industry was employed in the crea- 
tion of knowledge only, they must, of necessity, starve. 
Knowledge is of no utility, unless some use can be 
made of it. Thus, we see that all classes of laborers 
are mutually necessary to, and dependant upon, each 
other. 

11, Of the modes hy which the productiveness of human 
industry may he increased ; and, first, hy the use of 
natural agents. 

In the early stages of society, industry is productive 
of but a small amount of value. The reason is, that 
here labor derives but little assistance from the use of 
natural agents. With nothing to labor with but his 
hands and feet, man could subsist only in the most 
temperate climes. 

By the invention of a very simple instrument, as a 



What is said of industry in the early stages of society 1 

12* 



138 OF PRODUCTION. 

bow and arrow, or a lance, his condition is materially 
improved ; and, by still further availing himself of 
natural agents, and by economizing his labor, he may 
multiply his power, extend the circle of his desires, and 
increase the means of gratifying them, until he, at 
length, arrives at all the blessings of mature civilization. 
Hence, we see the use of natural agents. Without 
them, human productiveness would be limited to the 
exertion of the mere physical powers of man. 

Natural agents, are all things, whether animate or 
inanimate, which man can use for the purpose of assist- 
ing him in production. 

Animate natural agents, are beasts of burden, gener- 
ally ; such as the ox, the horse, and the mule ; and, 
also, in particular districts, the camel, the rein-deer, 
the elephant, and the dog. 

Some of the most important inanimate natural agents, 
are, the explosive force of gunpowder, wind, the gra- 
vitating power of v/ater, and the expansive power of 
steam. 

Every one is familiar with the uses to which the 
natural agents are applied. The value of the benefits 
which they have conferred upon mankind, by increas- 
ing the productiveness of the otherwise unassisted labor 
of man, can be estimated only by comparing the ad- 
vantages which a civilized community possesses ovei 
a tribe of ignorant barbarians. 

And, as by further discoveries in science, and inven- 



What are natural agents 1 

What are animate natural agents 1 Inanimate? 

What is said of the importance of the natural agents 1 



OP PRODUCTION; 139 

tions in the arts, the natural agents shall become more 
subjected to the power of man, and as knowledge be- 
comes more widely disseminated, in the same ratio will 
the condition of mankind be improved, and the means 
of happiness augmented. 

III. Of the manner in which 'productiveness may he 
increased hy division of labor. 

It has been seen that the productiveness of human 
industry, may be greatly increased by inventions and 
discoveries in the arts and sciences, by means of which 
man may avail himself of the use of natural agents. 
But human industry derives another important advan- 
tage from a proper division of labor. 

Thus, there are three departments of industry : in- 
dustry of discovery, industry of invention, and opera- 
tivo industry ; and different laborers in each. 

In the first department, are ranked philosophers and 
men of science ; such as those who investigate the 
laws of mechanics, of astronomy, of navigation, and 
agriculture, &c. ; and here, also, there are many sub- 
divisions. The astronomer, the mechanic, and the 
agriculturist, seldom make discoveries out of their own 
departments. 

In the second department, are those who make in 
ventions in the arts, and apply the laws discovered by 



By what other means, besides the use of natural agents, may productive- 
ness be greatly increased 1 
What are the three principal departments of industry 7 
Who are ranked under the first department 1 Under the second 1 



140 OF PRODUCTION. 

the first class, to practical purposes ; and here a di 
vision of labor is equally necessary to success in inven- 
tive industry. 

In thei third department of industry, there are as 
many distinct classes of laborers, and, consequently, 
as many divisions of labor, as there are different trades, 
pursuits, and professions, among mankind. 

And so extensive is the field of labor comprised 
within these three departments of industry, that, if the 
labor were not divided among many thousands, and if 
each individual were obliged to be his own discoverer, 
inventor, and operator, old age would come upon him, 
and death would close his labors, before he could re- 
ceive any avails from his industry. 

Therefore, each individual succeeds best, and pro- 
duces a greater amount of value, by devoting himself 
to but one occupation. Were the farmer obliged to 
make his farming utensils, to build his own house and 
barns, make his own furniture, and manufacture his 
own clothing, it is evident that each article would be 
poorly made, and much time would be uselessly con- 
sumed. 

But, by constantly pursuing the same occupation, 
a great degree of skill and dexterity is acquired, 
which greatly increases the productiveness of human 
labor. 

Division of labor, in a complicated process, avoids 
the loss of time required in passing from one operation 



Under the third 1 What would be the result if there were no division of 
Jabor 1 What is gained by division of labor, in a complicated process 1 



OF PRODUCTION. 141 

to another ; it shortens the period required for learn- 
ing an operation, and suggests the contrivance of tools 
for the performance of the operation in which they 
are employed. For, the simpler any operation is, the 
easier it is to contrive a tool, or an adjustment, by 
which it may be performed. 

Some operations, in a given process, require greater 
muscular power, or greater dexterity, than others. 
Some can be performed only by the most experienced 
workmen, while others can be performed by children. 

Now, by division of labor, a manufacturer is enabled 
to employ, upon each operation, precisely the labor 
adapted to it, and is obliged to pay for each portion of 
the labor, no more than it is actually worth. This 
must greatly diminish the cost of production. 

Thus, the manufacture of pins may be divided into 
ten or more operations, and each operation employ one 
laborer. Thus, the labor of making a pin may be 
divided into wire-drawing, wire-straightening, point- 
ing, heading, turning, &;c. 

But, some of the laborers employed, are men ; others, 
are women or children ; and their wages vary from six 
shillings to four and a half pence per day. 

If the labor were not divided, one person must un- 
derstand the whole process ; and, therefore, must be 
employed at the highest price of labor ; and, hence, he 
must be paid at the rate of six shillings a day, for that 
part of the work which is worth only four and a half 
pence a day. 

What example is given as an illustration 1 



142 OF PRODUCTION. 

This would greatiy increase the price of pins, and, 
also, occasion a great deficiency in labor. It is by 
this means, also, that occupation is provided for the 
weak and the aged, for females and for children, who 
would, otherwise, be unable to earn any thing. 

Thus, by a proper division of labor, all the labor of 
the community is rendered productive, and an im- 
mense amount is annually added to the revenue of a 
country.^ 

IV. Limitations to the division of Labor, 

Every process can be reduced to its most simple 
operations ; and, when we have arrived at this point, 
we can proceed no further in the division of labor. 
Thus, the labor of making a pin 'can be divided into 
many separate operations, each differing from either 
of the rest ; but there is a point beyond which this 
division cannot be carried, for it is no division of labor 
to employ two men to perform the same operation. 

From what has been said concerning the acquisition 
of skill, the saving of time, &;c., by this division of 
labor, it is evident that an establishment which carries 
the division to this limit, and has just as many laborers 
as will fully employ each other, can undersell any 
other establishment of the kind, which does not carry 
the division of labor to the same extent. And the 
more systematically this division of labor, and of labor- 
ers, is accomplished, the greater will be the economy. 

Wayland. 

What is the natural limit to the division of labor ? 



OF PRODUCTION. 143 

But the division of labor may also be limited by- 
other causes. These are, the limitations of capital, 
and of demand. 

1st. The greater the division of labor in any estab- 
lishment, the greater the amount of capital which is 
requisite. Thus, in a pin manufactory, where division 
of labor is carried to its utmost limit, the proprietor 
must have sufficient capital to provide a large amount 
of the gross material, in order to keep all his laborers 
employed. A large amount of ca^^tal is requisite to 
establish and keep in operation such a manufactory. 

Hence, in a poor, or in a new country, before capi- 
tal has accumulated in the hands of large capitalists, 
there is but little division of labor. Manufactories 
will not be extensive, and the products of the country 
will consist mostly of the raw materials, which require 
but little division of labor for their production. 

For example, in a new country, where cotton may 
be raised, the raw material, cotton, will be exported, in 
order to be Vv'rought into cloth, where there are greater 
accumulations of capital, and consequently a greater 
division of labor. 

2d. Division of labor is controlled by the demand 
for the article produced. If, in a certain district, there 
has, heretofore, been a demand for all the cotton cloth 
which one factory, with the proper division of labor. 



What other causes limit the division of labor 7 

Why may not a division of labor be carried to any gi-eat extent in poor or 
new countries ? 

How does a diminished densand for articles affect a division of the labor 
required for their production 1 



144 OF PRODUCTION. 

can manufacture ; and, if the demand should now de- 
crease one half, a portion of the laborers must be dis- 
charged, which would make the division of labor less, 
or the whole must work only half the time. The for- 
mer alternative would, probably, be preferred, as we 
know is usually the case. 

The demand for the article is controlled by several 
circumstances, which it may be well to mention : — 

1st. It is evident, that the greater the number of 
the consumers, the greater the demand, and vice versa. 

2d. The demand is controlled by the wealth of the 
inhabitants, for none buy but those who are able. 

3d. The demand is controlled by the cost of the ar- 
ticle ; which, as it is greater or less, increases or di 
minishes the number of consumers. 

The same principles, as enumerated above, regulate 
the division of labor, whether considered in relation to 
portions of the same country, or to portions of the 
whole world. There are, also, certain physiological 
laws which regulate the division of labor in different 
countries. 

Only a very ^q\y of the objects of desire, are pro- 
duced in one country ; for, different portions of the 
globe possess different facilities for production, and no 
district possesses advantages for producing every thing. 
Thus, China produces tea ; Cuba produces sugar and 
cotton ; and New York produces wheat ; and it would 
be folly for one country to attempt to produce those 
products to which it is in nowise adapted. 

By what several circumstances is the demand for articles controlled 1 
, What principles regulate the division of labor in different countries 1 



OP PRODUCTION* 145 

And by this natural division of labor nations are 
made dependant upon each other ; and if one prospers, 
and exchanges and commerce are free, all prosper ; and 
if one suffers, all suffer. Thus, this mutual depend- 
ance makes it the interest of nations to seek the hap. 
piness and prosperity of each other. 

V. EJfects of the increased productiveness of human 
industry. 

When industry is judiciously applied to capital, the 
result is product, value, or the means of gratifying human 
desire. That is, increased productiveness is equivalent 
to increased means of human happiness. If every 
man, in a particular district, by the same amount of 
labor that he employed last year, were able this year 
to create twice as much value ; it must appear obvious 
that a greater number of desires would be gratified, 
and that, consequently, human happiness would be in- 
creased. 

This subject leads us to examine an objection which 
has been made — that ^he use of labor-saving machinery 
is prejudicial to the interests of the laboring classes. 

The objections urged against labor-saving machines 
are, that they employ a less number of laborers ; and 
hence, that many laborers are thrown out of employ. 
But, one general and incontrovertible argument against 



What is the effect of this natural division of labor 1 

What is the result of a judicious application of industry ? 

What objections have been made to the use of labor-saving machineiy 3 

IS 



146 OF PEODUCTION* 

the truth of this objection is, that Improvenienfs in 
machinery have been going on ever since the creation ; 
that the demand for labor has not diminished, but has 
more than kept pace with the increase of population ; 
and that in those districts where improvements are the 
most extensive, the laborers are the most numerous. 
The desires of mankind have been found continually 
to increase with the means of gratifying them ; and 
although more products have been created by this in- 
crease of productiveness, yet the desires of mankind 
have been found sufficient for their consumption. The 
population of a country is found to increase nearly in 
the ratio of its productiveness. 

It is true, that by the use of machines i\\Q manner 
of labor is often changed, and a portion of the labor- 
ers are thrown out of that kind of employment.' But 
these changes are generally gradual ; for improvements 
in machinery are usually made by slow degrees, and' 
as the demand for laborers becomes less, fewer will 
learn the trade, which will tend to keep up the wages 
of those who remain m it. But the rm.pro\^ment may 
be so sudden, that many ^aborer^ will be deprived of 
their present occupation. Thus, upon the introduction- 
of the cotton gin machine, for freeing the cotton of the 
seed, which before required an immense amount of la- 
bor, many laborers v/ere thrown out of this employ-^ 
ment : but a new avenue for labor was thereby opened ;• 
cotton became cheaper- — it was used by thousands who 

What may bs said of th.e truth, of this objection /? 
WJiat change in labor is effected by the use of machines ? 
What has beeB. the effect of the introduction of the cotton-gin 1' 



OP PRODUCTION. 147 

before were unable to procure it, a greater demand for 
cotton was created, and a greater number of laborers 
Demanded. There was a change in the manner of the 
labor, but the amount required was greater. And sup- 
pose the demand for cotton cloth to be doubled, there 
must not only be twice the amount of cotton produced, 
but also twice as many vessels built to transport it, and 
twice as many men to navigate them, besides a greater 
number of men to construct machinery to fabricate 
the cloth. And all this increased demand for labor is 
the result of the introduction of a simple labor-saving 
machine. 

A printing press is a labor-saving machine. So 
by the invention of the o i of printing many thousand 
copyists were thrown out of employ ; but who can es- 
timate the vast increase of laborers, in communicating 
knowledge, to which this invention has given rise ? 
The desire for knowledge has fully kept pace with the 
means of gratifying it. 

But producers are also the consumers of many pro- 
ducts, and they derive an advantage from the cheapness 
occasioned by labor-saving machines. Each is there- 
by able, by the same amount of labor, to procure a 
greater amount of the objects of desire. 

This is the same as though the income of each indi- 
vidual were increased : for, if a man can procure, by 
one day's labor, double the amount of products, it is 



What of printing presses 1 

What particular advantages do the producers themselves derive from the 
Introduction of machinery 1 



148 OP PRODUCTION. 

the same thing in effect as though his wages were 
doubled. 

By an increase of productiveness, therefore, every 
consumer is rendered richer. It is also one of the 
effects of machinery, as we have seen, that production 
is rendered more perfect ; so that each person not only 
obtains more of the same article, by his own labor, but 
he also obtains a better article. 

Machinery, in a greater or less degrecj supersedes 
human labor. Let us, then, suppose the extreme case, 
in which machinery should be brought to supersede 
human labor altogether. Yet the numbei-s of mankind 
would not be diminished, for the sum total of products 
would be the same, and there would probably be less 
suffering to the poorer and laboring classes to be ap- 
prehended : for in that case the momentary fluctua- 
tions, that distress the different branches of industry, 
would principally affect machinery, which, and not 
human labor, would be paralyzed ; and machinery 
cannot die of hunger ; it can only cease to yield 
profit to its employers, who are generally farther re- 
moved from want than mere laborers. Although this 
is hardly a supposable case, yet it serves to illustrate 
the principle. 

The conclusion, therefore, at which we arrive, is, 
that transient evil may sometimes be experienced by 
the producers, upon the introduction of labor-saving 
machines ; but that an increase of productiveness, oc- 
casioned by this means, is highly beneficial to the con- 

Suppose the extreme case, in which machineiy should be made to super- 
sede human labor entirely — what is the conclusion arrived at 1 



OF PKODUCTION. 149 

sumers, and ultimately beneficial to the producers 
themselves. All that we possess above the comforts of 
savage life, is the result of the use of natural agents, 
and of the increased productivensss of human labor. 

SECTION III. 

Of the Principles which govern the application of 
Labor to Capital. 

We have thus far considered labor and capital sep- 
arately. But, as all production is the result of the 
application of industry to capital, it will be proper to 
consider the conditions on which they unite, and the 
laws which regulate their union. In examining the 
conditions on which labor and capital unite, and in in- 
vestigating the laws of production, we shall be led into 
the secret of national wealth, and shall discover those 
principles of government and legislation which have 
advanced the prosperity of some nations, and the mis- 
taken policy which has so often involved the depression 
and bankruptcy of others. 

I. Freedom of Labor and Capital necessary to Pro- 
duction. 

Industry will be applied to capital in proportion to 
the security of property ; and as every man enjoys the* 



How have labor and capital been considered thus far, and what is it now 
proposed to examine 1 
What is the first principle necessary to production 1 
What is said of tlie importance of security of property ? 

13* 



150 OF PRODUCTION. 

advantages of his labor and capital. This is almost a 
self-evident proposition, for no one will labor unless he 
expects to receive the rewards of his industry. 

Where there is no division of property, and each 
one is at liberty to take what he will, as the indolent 
will fare as well as the industrious, th&re is no incentive 
to industry. 

And the same consequence results from insecurity 
of property. Where the avails of one's industry are 
liable to be taken from him, at any moment, by the 
rapacious hands of a tyrant, few will labor more than 
sufficient to support existence ; for if the industrious 
lose the avails of their labor, they are benefitted no 
more than the idle. Therefore, human labor will be 
exerted, in different countries, very much in proportion 
as the right of property is both understood and en- 
forced. • 

Hence the necessity of wise and efficient laws, and 
the importance of all means which shall prevent the 
violation of the right of property, either by governments 
or by individ^ials. 

Therefore, to preserve freedom of labor and capital, 
and consequently to increase the amount of produc- 
tiveness, moral and religious principles should be in- 
culcated, and men should be taught to respect the 
.rights of others. All violations of property should he 
redressed, and each individual should be allowed to use 
his property and his industry as he will, and as he 
thinks will be the most advantageous to himself: for 

What is said of the importance of good moral and rellgioua principles 1 



OF PRODUCTION. 151 

every man is more likely to ascertain in what manner 
he can best employ his capital and industry, than any 
other man can ascertain for him. 

But a government, by a mistaken policy, even when 
its object is the public welfare, may sometimes aggra- 
vate the very evil which it is designed to remedy. 

If freedom of labor and capital be necessary to cre- 
ate the greatest amount of productiveness, we see what 
must be the effect of monopolies. 

A monopoly is an exchisive right granted to a man, 
or to a company of men, to employ their labor or 
capital in some particular manner. Such was the ex- 
clusive right granted to the British East India Com- 
pany, to import into Great Britain or her territories 
the productions of all countries east of the Cape of 
Good Hope, 

The effect of such a regulation is, to restrain the 
freedom of labor and capital, and to prevent others 
from engaging in business which might be profitable 
to them. Such a regulation, is taking from one portion 
of community some of its natural rights, and granting 
them to others as a privilege. It is, therefore, a direct 
injury to those from whom the right is taken. 

Moreover, those who hold this exclusive privilege, 
being liable to no "competition, may charge for their 
commodities whatever they choose ; and thus the price 
which the consumer must pay, is enhanced at the mere* 
will of the monopolist. And it being for the pecuniary 
interest of the monopolist to charge dear for his com- 

What is a monopoly, and what its effect ? 



152 OP PRODUCTION* 

modities, and there being nothing to restrain him, there 
can scarcely be imagined any limit to the oppression 
which he may exercise. 

In the case of a patent and copy right, which, per- 
haps, might be regarded as a species of monopoly, no 
right is taken from the community, and the law inter- 
poses merely to guaranty to a man the avails of his 
own industry. 

There are, however, some kinds of business, in the 
good management of which the whole people are direct- 
ly interested, which may be made the subjects of mon- 
oply, for the general welfare. 

Monopolies are sometimes created for the purpose 
of building bridges and railroads, constructing ferries 
and digging canals, where they are objects of public 
interest ; and it is thought that such monopolies are 
often very beneficial. For they are, many of them, 
works that would never be undertaken by individuals, 
unless government, by preventing the competition of 
others, should secure to the proprietoi*s of such works 
a more exclusive right in them than they would other- 
wise possess. 

But monopolies should never be granted where the 
exclusive object is to promote the interest of one per- 
son, or of a company of individuals. 



Are patent and copy rights monopolies 1 

In what cases may monopolies properly be granted 1 



OF rRODUCTIOX. 153 

II. The greater the Ratio of Capital to Labor, the 
greater will he the Wages of Labor, and the greater 
will be the Stimulus to Industry. 

Those who hold capital, are desirous of uniting it 
with industry ; and those who have industry, are desir- 
ous of uniting it with capital : for, if they be not so 
united, neither will yield any profit. 

Hence, when the number of laborers is great in pro- 
portion to the capital, the demand for labor becomes 
less, and the price of labor falls ; and, on the contrary, 
when the amount of capital is great in proportion to 
the number of laborers, the demand for labor increases, 
and the price of labor rises^ This is always the case 
under a permanent and wise government, where the 
right of property is secure, and men expect to receive 
the avails of their own industry. But, without any 
opposition to this principle, wages may be high^ and the 
laborer be unable to appropriate them to the gratifica- 
tion of his desires, and here the stimulus to industry will 
be lessened. 

Such is often the case in a newly settled country of 
great fertility, where wages are high, but where the 
objects of desire are few, and attainable with difficulty. 

But in a large city, where the ratio of capital to 
labor is great, the wages of labor increase in propor- 
tion ; and also the numerous objects of desire call forth 
a greater exertion of industry ; for, by means of it, a 
greater number of desires is gratified. 

How does the ratio of cajjital to labor affect wages, and how illustrated 1 



154 OF PRODUCTION. 

Hence, an accumulation of capital is an advantage 
to the laborer as well as to the capitalist. For, as has 
been seen, the wages of labor rise in proportion to the 
increase of capital ; that is, in proportion to the ability 
of those who must pay for the labor. 

Hence, if the laboring classes repine at the prosperity 
of the wealthy, they repine against the means of in- 
creasing their own rate of compensation.'* 



^ It must not, however, be supposed, that it is better for a na- 
tion, that one portion of the people should be mere capitalists, 
and the other mere laborers ; that one portion should be f ery 
wealthy, and the other very poor : better if all, by industry, vir- 
tue, and economy, could attain to a moderate degree of inde- 
pendence, and thus unite the occupations of laborer and capit- 
alist. 

But, the principles, views, and abilities of men, are so dif- 
ferent, to say nothing of the effects of fortunate or disastrous 
chances, or events, that any arbitrary attempts to equalize prop- 
erty, must be regarded as vain and foolish in the extreme ; and 
if property were equally divided to-day, there would be an ine- 
quality to-morrow. 

And, where this inequality arises from the economy and 
frugality of the more industrious members of community, and 
not from fraud and injustice, those less industrious, or less for- 
tunate, have no cause of complaint, and have been defrauded of 
none of their rights. 

But, where distinctions in wealth have arisen, and are still 
propagated by a partial and oppressive government, which taxes 
the poor and industrious, for the support of the wealthy and idle, 
there is sufficient cause of complaint, and the wealthy are justly 
regarded as the enemies of the poor. 

Of what advantage to the laborer, then, is an accumulation of capital 1 



OF PRODUCTIOlSr. ' 155 

III. The Productiveness of Industry and Capital will 
he increased in proportion to the Intellectual Improve^ 
ment of a People. 

Ignorant men are indolent, because they are unac- 
quainted with the benefits that may be secured by in- 
dustry, or because they know not the means of securing 
them. 

An Indian, who knows no better condition than his 
own, has no motive to industry beyond what may be 
adequate to procure the simple necessaries of life : but, 
acquaint him with the conveniences and luxuries of 
civilized life, and that by an additional effort he can 
procure them, and his industry will expand with the 
occasion. Thus knowledge excites the savage to exer- 
tion, and directs that exertion to a profitable end. 

In all trades and professions, the amassing of wealth, 
and the consequent gratification of desire, are the 
prime motives to exertion ; and knowledge and skill in 
one's particular calling, are the sure and only means 
of success. 

We therefore see how labor must be stimulated, and 
productiveness increased, by intellectual cultivation. 
The principle upon which this proceeds, is so evident 
in itself, that there is little need of a further illustra- 
tion ; for every day's observation teaches us, that those 
who are best acquainted with their business, are the 
most successful. 



What effect has the uitellectual improvement of a people upon the pro- 
ductiveness of industry and capital 1 
Why are ignorant men usually indolent 1 



156 ' OF PRODUCTION* 

Knowledge should be made general, and extended to 
all classes in community, for it enlarges the resources 
of all. Also, the prosperity of a nation will depend 
greatly on the purity of its moral character. 

As morals become corrupted, idleness and crime in- 
crease. On the contrary, on the good moral charac- 
ter of a nation, and especially of a Republic, depend 
the justice of its laws, security of property, and indi- 
vidual and social virtue ; the invariable attendants of 
which are industry and frugality, the sources of wealth 
and happiness. 

IV. Of Protective Duties. 

By protective duties, is here understood duties or 
taxes upon imported foreign products. Such duties 
are levied either for the purpose of favoring the do- 
mestic production of some commodity, — as when a 
duty is levied upon all imported broadcloths, for the 
purpose of favoring domestic manufactures ; or, 2dly, 
for the purpose of public revenue ; or, 3dly, to support 
the manufacture of some important article of public 
use, so as to enable a nation to rely on its own inter- 
nal resources, in case of restrictions upon its commerce, 
by which a supply of foreign products may be prohi- 
bited. Each of these objects will be considered in 
detail. 



Why does the prosperity of a nation depend greatly upon the pxirity of i«s 
mofal character T 
What are protective duties 1 
For what purposes are they imposed 1 



OF PRODUCTION. 157 

1st. Suppose that foreign broadcloths can be afford- 
ed for five dollars per yard, but that our home manu- 
factures cannot afford them for less than ten dollars 
per yard. In this case we should use foreign cloths 
exclusively. 

But suppose that government, for the purpose of 
supporting home manufactures, should now impose a 
duty of four dollars per yard on all imported broad- 
cloths. Now all who purchased broadcloths, would be 
obliged to pay nine dollars per yard for the same, for 
they could not be afforded for a less sum. 

But it is evident that this duty would not support 
home manufactures, for the profits upon the sale of do- 
mestic broadcloths would not be sufficient to pay the 
cost of production. For, if it cost ten dollars per 
yard to manufacture the cloth, and only nine could be 
obtained for it, as no profits could be gained in the 
business, none would engage in it. 

The effect of such a duty, then, where the duty is 
not sufficient" to raise the price equal to the cost of 
production, is simply this : — the importer pays govern- 
ment four dollars per yard for all broadcloth that he 
brings into the country ; and the consumer, or pur- 
chaser of the .cloth, pays the importer. In other 
words, the consumer pays the importer four dollars ex- 
tra per yard, for which he receives no value in return ; 
and the importer is merely the agent for transferring 
this money into the hands of government. 



1st. When they are imposed for tne purpose of favoring domestic manu- 
factures, what are the arguments for and against them •? 

14 



153 OF PSODUCTION. 

The consumers, or the people generally, are losers 
to the full amount of the extra price paid ; the impor- 
ter neither loses nor gains by the operation, because 
he charges the consumer or purchaser an extra price 
per yard equal to the amount of the duty ; and the 
government receives the whole benefit, which is none 
other than an indirect tax upon those who use broad- 
cloths. By such a duty domestic manufactures are 
not supported, and the nation is evidently impover- 
ished. 

But let us suppose that the duty, instead of being 
four dollars, should now be increased to six dollars per 
yard. 

Then foreign cloths could not be obtained for less 
than eleven dollars per yard, and the domestic manu- 
facturer being%ble to manufacture cloth for ten dol- 
lars, would be able to undersell the importer. Now 
encouragement would be given to domestic manufac- 
tures, and industry would flow in that dire'jtion in 
proportion as that business was more profitable than 
any other. 

But competition would soon reduce the profits to 
the same ratio that existed between other branches of 
industry. Nevertheless, as we can ijow furnish our 
own cloths cheaper than foreigners can produce them 
while they are obliged to pay the duty, we may use 
cloths wholly of domestic manufacture. Let us now 
see if the nation is any gainer in wealth by this sys- 
tem. 

We will suppose that the price at which cloth is 
sold, still remains at eleven dollars per yard. The 



OF PRODUCTION. 159 

manufacturer would then gain one dollar on every yard 
that he sold ; and it cannot be conceived that he could 
possibly gain more, for the cost of production, by 
labor, machinery, (fee, is ten dollars per yard, and he 
sells for eleven. Free competition will always keep 
the price reduced ; and one branch of industry cannot 
long be more profitable than others, for the high profits 
will induce other individuals to make investments in 
the business, until the rate of profit is reduced to ils 
ordinary level. 

It is therefore evident, that the profits derived by 
the manufacturer are no greater than those derived 
from other branches of industry. The manufacturer 
gains one dollar profit on each yard, and the consumer 
evidently loses six dollars on each yard that he pur- 
chases. For, were it not for the duty on foreign cloths, 
he might have obtained those of the same quality for 
five dollars, and he now pays eleven. 

What profit, then, does the nation derive by the sup- 
port of domestic manufactures ? It may be said that 
they give encouragement and support to industry which 
would not otherwise be employed. 

But, although industry should be supported, it would 
be supported u^nprofitably, for the cost of production, 
as we have seen, is greater than the value of the pro- 
duct. Thus, in the above case, the value of broadcloth 
was five dollars per yard, for it could be manufactured 
for that ; and wherever a greater value is consumed 
in the manufacture of the product, the excess is ^ 
much loss. 

But again ; as the price of broadcloth rises, the de- 



160 OF PRODUCTION. 

mand for it will lessen, and if the price be doubled, 
probably not half the quantity will be used. One half 
of the consumers, and those of the poorer classes, will 
thus be deprived of the use of the article. 

And if the price of broadcloth be doubled, and only 
half the usual quantity used, the community will pay 
the same for the half that they did for the whole, and 
the same amount of industry will be employed as be- 
fore. But it will be industry unprofitably employed ; 
the same as where a laborer might have obtained a 
bushel of wheat for a day's labor, but now voluntarily 
works two days for the same.^ 

^It is sometimes cheaper for a man to buy goods than to man- 
ufacture them ; it is sometimes cheaper for a man to buy wheat 
ihan to raise it. Upon the same principle it is sometimes cheap- 
er for a nation to buy its broadcloths than to manufacture them. 
And the principles which should govern the policy of indivi- 
duals and of nations, are the same. If a farmer has time, which 
he could not profitably employ in any thing else, he may make 
many of his farming utensils ; but if the business of cultivating, 
gathering, and disposing of his crops demands the whole of his 
time, better it would be to purchase his farming utensils of the 
mechanic. If the farmer could make all his farming utensils 
equally as well as the mechanic by working twenty days in the 
year, and if by working upon his farm ten days in the year he 
could raise produce sufficient to purchase his farming utensils, 
the latter would certainly be the more politic course. The same 
principle may be applied to nations. 

Now, suppose that Great Britain had hitherto supplied us 
with all the broadcloth that we have us'cd, and that she exported 
to this country one hundred thousand yards annually ; suppose 
that we paid for this cloth five hundred thousand bushels of 
wheat, which cost the country five hundred thousand days labor j 



OF PRODUCTION. 161 

2d. We are next to consider duties upon imports, as 
a system of taxation ; that is, where they are imposed 
for the purposes of public revenue. 

The revenue which is obtained from duties on im- 
ports, is not levied in proportion to the wealth of those 

now, suppose that we could not manufacture the same amount 
of cloth, of the same quality, with less than eight hundred 
thousand days labor, which would be the better policy for the 
country ; to manufacture the cloth, or to raise the wheat, and 
send that in exchange for it ? 

The answer is at once obvious. While we can raise the 
w^heat, we shall purchase our cloths with it. But if there is a 
f^reat amount of industry in the country which could not be em- 
ployed in raising wheat or any other products by which to obtain 
the broadcloth, we might then find it the better policy to manu- 
facture our own cloths ; the same as the farmer, who had not 
land enough to employ his whole time in raising wheat or other 
products, might find it a saving to make a part or the whole of 
his farming utensils. It is for the advantage of nations, as well 
as of individuals, to obtain their necessary articles of consump. 
tion with the least possible amount of labor. 

But although it may at first cost us more to manufacture our 
own cloths than to pay other countries for them, it may be 
urged, that by protective duties, we shall shorten the period at 
which we may profitably supply ourselves, and that thus our ul. 
timate benefit will more than repay our temporary loss. And 
first, what proof have we that we can ever manufacture cloths 
as advantageously as England, for example, can manufacture 
them ? And why can England or any other country now 
afford them so cheap ? If we enquire into the causes that ena- 
ble the English manufacturer to afford cloths at so low a price. 



2d. What are the arguments for and against protective duties, wlien i'la 
posed for the purposes of public revenue 1 

14* 



162 OF PRODUCTION. 

who pay. A person worth a mllHon of dollars maj 
avoid paying the tax, by not using the article upon 
which the tax is levied ; while a poor person, by using 
the article, may pay a greater amount of taxes. 

If the duty were upon broadcloths, the man worth 

I apprehend that we shall not be so ardent to see the same state 
of things in our own country. Until our population, and espe- 
cially the operative classes, become so numerous that the labor- 
ers are obliged to work for a bare subsistence, the wages of labor 
can never be so low in this country, nor, consequently, can 
manufactured products be afforded so cheap here, as in Great 
Britain, or in any other country where the same causes operate 
to keep down the v/ages of labor. 

I speak here of the manufactu4-e of those products for which 
one country affords no better natural fac^Htics than another. If 
Great Britain receives the cotton which supplies her manufac- 
tu:i3s at the same rate that Massachusetts receives hers, and the 
natural facilities of water, steam power, machinery, &c., are 
th© same in both countries — and if the wages of labor are lower 
•^Xi England than in Massachusetts, England can certainly 
manufacture cotton cloth cheaper than Massachusetts can. 
Therefore, before concluding ^that manufactures can be support- 
ed as cheaply and profitably in one country as in another, we 
'must take into consideration the natural facilities of each 
country, and the wages of labor as they now are, and as they 
are likely to be in future. 

Bnt if it be thought, that by the natural course of events, we 
can ever manufacture any given article as cheaply as any other 
nation can produce it, the farther question arises, can we, by 
protective duties, hasten such an event ; and if so, can we do it 
profitably ? For it may be that the cost would be far greater 
than the gain. As has been shown, protective duties are a pre- 
sent tax upon the nation ; and if their object be to encourage 
tiUT manufactures until thejr can support themselves, they should 



OF PRODUCTICN. 163 

five thousand dollars would want as many coats as the 
man worth a million, and he must therefore pay as 
high taxes, if the public revenue were all derived from 
this source. 

Another objection is, that the taxes paid by this 



not only be able to support themselves after that period, but also 
to repay the expense of that fostering care which has been be 
stowed upon them. 

For the support of manufactures in a country that possesses 
natural advantages for them, large accumulations of, capital in 
the hands of individuals are necessary, and also a numerous 
population ; and the poorer and more numerous are the operatives, 
so much the cheaper may the manufactured articles be afforded. 
If the wealth of a community be pretty equally divided among 
Us inhabitants, it is evident that the wages of labor will be higher. 
For those in easy circumstances will not labor at so cheap a rate 
ss i.iiose who are pressed by immediate v/ant. 

Now, it has been shown, that where protective duties are 
necessary for the support of domestic manufactures, they do not 
increase the sum total of the capital of a country, but, on the 
contrary, the country is impoverished by them, for they occasion 
an unproductive expenditure of industry. But yet it is true that 
protective duties, if carried to a very great extent, may work 
such a change in things, that manufactured articles may be pro- 
duced as cheaply in the country impoverished as elsewhere ; for 
although protective duties impoverish the nation, they impoverish 
that portion of the nation chiefly which pays the duties or the 
extra price occasioned by them, and the other portion (thfe 
manufacturers) continue to increase in wealth. Thus, although 
there is a deduction from the national capital, yet what remains 
accumulates in the hands of a few, and the remainder are ren- 
dered poorer than they otherwise would be. 

By the continued operation of such causes, manufactures may 



164 ' OF PRODUCTION. 

method do not all accrue to the government. By a 
duty of five dollars per yard on imported broadcloth, 
the price of all broadcloth in the country is raised five 
dollars per yard, while foreign broadcloth continues to 
be imported ; and government receives only the extra 



finally be supported, if they will only increase the population to 
such an amount that there will be no other source of industry 
open for them ; for protective duties evidently collect capital in 
title hands of the few, and impoverish the great mass of the com- 
munity. So far they are favorable to the support of manufac- 
tures ; but it must be confessed it is not so readily seen v/hat 
tendency they have to increase the numbers of the population ; 
for as the means of subsistence fail, it is a natural consequence, 
that the population diminishes. But if the population, and espe- 
cially if the poorer classes are sufficiently numerous, doniuf^Lic 
manufactures may be supported, although their introduction 
may have been attended by an unprofitable consumption of the 
national wealth. But no person should wish them to be intro- 
duced before their natural time, if the unnatural means used for 
the purpose are attended with consequences so fatal. 

At their proper time, manufactories will be established m 
every country where they can be rendered profitable, and it is 
thought that no legislative enactments can hasten that period 
without inflicting upon the country an evil greater than the 
good which is gained. But as facts are a kind of argument the 
least liable to contradiction, we will advance a few to illustrate 
the effects of the French protective system. 

To favor the working of her own mines, France has imposed 
duties on all foreign iron imported into the country. During a 
period of eight years, from 1814 to 1822, the French paid, in 
the increased price of native iron, occasioned by the duties on 
foreign iron, upwards of forty millions of francs. This is the 
direct cost for protection : in other words, it is the price that 



OF PRODUCTION. 165 

price paid on that which is imported, while the con- 
sumers pay into the hands of the producers the extra 
price on American cloths. Thus one portion of the 
people is paying into^ the hands of another, and not 
into the hands of government. 



France has paid for unproductive industry, for she could have 
obtained the iron for forty millions of francs less than she gave 
for it. The iron which the French are obliged to use, is render- 
ed dearer by this system, consequently the demand for iron has 
diminished, for fewer can afford to use it ; and wherever it is 
used, it has increased the price of every thing with which it is 
connected. 

" The effect of these measures is to add fifty francs to the 
price of a plough, and to render cotton machinery one third 
dearer than it otherwise, would be if imported. The price of 
charcoal has been doubled or trebled, and from twenty.five to 
fifty per cent, has been added to the price of fire and wood." 
And yet the iron business remains below the average rate of 
profit. 

France has imposed a duty on foreign sugar, which has in- 
deed increased the quantity made at home and at her islands ; 
but by the effect of this duty, France pays for the sugar that she 
now uses one million four hundred thousand pounds per annum 
more than she would otherwise pay. Suppose this to continue 
for twenty years, it will then amount to twenty-eight million 
pounds sterling, the interest of which, at five per cent., will buy 
nearly the whole amount of sugar now consumed in France. It 
was thought that these duties would give encouragement to the 
manufacture of sugar from beet-root, which would finally supply 
France a* the ordinary price. But long before such a period 
can arrive, if it ever Can, France will have expended a sum of 
money, the interest upon which would far more than supply hey 
with the sugar that she now consumes. 



166 OP PRODUCTION. 

But it is not simply taking five dollars from one man 
and giving it to another, — it is worse than this ; it is 
taking five dollars from the consumer, while the man- 
ufacturer receives, in the case supposed, only one dol- 
lar profit, and the difference, four dollars, is consumed 



In order to favor the cotton manufacture, for which she ia 
but poorly adapted, France has imposed duties upon the pro- 
ducts of other nations, which have retaliated by imposing duties 
on her wines and silks. Thus other nations, which before pur- 
chased these articles of France, now supply themselves, which 
has been so great an injury to France, that since the Revolution 
her exports of wines and silks have considerably diminished. 
Thus the industry of Fi'ance has been expended upon products 
that were not natural to her soil and climate ; and other nations, 
for the sake of retaliation, have exper^ded their industry upon 
what is not natural to them. The productiveness of all coun- 
tries would be greatly increased if all could be induced to follov/ 
the liberal system of free trade. 

But while many admit that the free trade system would be 
the best for all nations, if all would adopt it, they contend, that 
if one nation adopts the prohibitive policy, others are obliged, in 
self-defence, to adopt the same. For example, we are told that 
if England imposes duties on the cotton that we export to that 
country, we must, in self-defence, oblige her to pay duties upon 
broadcloth, or some other product with which she supplies us. 
By obliging us to pay the duty on cotton, England may inflict 
a severe injury upon us, for she may thus deprive us of our best 
market for cotton ; but at the same time she inflicts a gi^eater 
injury upon herself; for if she attempts to cultivate the cotton 
either at home or in her colonies, the very fact that she is obliged 
to support that cultivation by a duty upon our cotton, shows 
that her industry might have been more profitably employed iu 
the creation of some other product which she might have ex. 
changed for our cotton. 



OF PKODITCTION. 167 

in unproductive labor. It is so much value lost to the 
community. 

3d. Duties are sometimes levied on imported articleSy 
m order to encourage their home manufacture ; lest, 
in case of war or some unforeseen event, the nation 
that produced the articles "should refuse to supply 
fhem. 

Thus, if, in time of peace, we received all our mu- 
nitions of war from Great Britain, because she could 
afford them cheaper than we could manufacture them, 
it would certainly be an advantage to the nation to 
obtain them from that source, provided it could always 



But although we suffer by the policy of England, shall we 
gain any thing by adopting the same policy towards her ? If 
we impose a duty on her broadcloths, whether we attempt to 
manufacture our own cloths, or still use those of England, the 
country is impoverished, as has already been shown. The only 
benefit, as I conceive, that we can derive from this system of 
retaliation, is, that, we may, perhaps, compel England, by injur 
ing her, to adopt a more liberal policy towar Is us. 

If England closes her. market against our cottoi', we may re- 
fuse to receive her broadcloth ; we may, perhaps, injure her more 
than she can injure us. But while we continue the prohibitive 
policy towards England, we shall be hijuring ourselves ;. and 
the ofily wisdom in such a course, v.'Ould be the probability that 
we might induce Englaad to abolish her duties on our products. 
Were the foreign trade of nations regulated by their true in- 
terests, there wouM no longer be any necessity for this destrac, 
tive pystem of commercial Vv'arfare. 



3d, Vfhat maj^ be said of the policy of productivG duties, when imposel 
for purposes of iiatiGnal safety 1 



163 OP PRODUCTION. 

thus obtain them. But, if war should occur; Great 
Britain would prohibit the export from her ports of 
munitions of war, and* we should be left at the mercy 
of our enemy. 

It is best for the nation to guard itself, at any haz- 
ard, against such an event. And, although duties 
upon articles of necessity are an evil, yet in the case 
above mentioned it may be an unavoidable one. 

V. Of Bounties, 

The des gn and effect of bounties is nearly the same 
as that of prospective -iuties, and the principle objections 
that may be urged a^^^ainst the former, apply equally 
to the latter. But, in one respect they differ from 
protective duties. Bounties are never offered for the 
purpose of obtaining a revenue ; on the contrary 
government, in this case, is paying out money instead 
of receiving it. 

The follov/ing is the manner in which bounties are 
bestowed :— If foreign cloth can be afforded for five 
dollars per yard, and we cannot make it for less than 
.ten, government gives to the home manufacturer five 
dollars for every yard that he sells, and the cloth is 
sold at its former price of five dollars per yard. 

But from whence does government obtain the money 
which it thus expends in bounties ? Evidently by tax- 



What is the design and effect of bounties ? 
How do they differ from protective duties 1 
In what manner are bounties bestowed ? 



OF PRODUCTION. 169 

ing the people in some manner ; for government has 
nothing which it does not receive from the people. 

To show the inexpediency and folly of granting 
bounties for the purpose of favoring domestic manufac- 
tures, would require but the same arguments which 
may be used against protective duties ; for the effects 
of each upon production are the same. 

Bounties, however, the same as protective duties, 
may be effectual in supplying us with necessary pro- 
ducts, such as munitions of war, &;c., for the supply 
of which it would be unwise to depend upon foreign 
countries. But, for several reasons, bounties -are less 
objectionable than protective duties : — for, 

1st The price of the article is not visibly raised, 
and the rich and the poor are supplied as equally as 
before, and apparently, though not really, at as cheap 
a rate ; — for the taxes of all must be heavier, as from 
this source government obtains the revenue which it 
expends in bounties. 

2d. In the case of bounties, we pay the extra price 
only upon articles of domestic manufacture, while by 
discriminating duties we pay the same upon articles 
both foreign and domestic* 

Thus, by a duty of five dollars upon every yard of 
imported broadcloth, the price of broadcloth is liable 
to be raised five dollars, and the country pays this 
extra price for all the cloth which it consumes, whether 
foreign or domesti<3. 



In what cases-might bounties be bestowed with proprietj' ? 
Why axe they Jess objectionable than protective ^dut}es 3 



170 OF PROBUGTIOIf* 

But, hy a bounty of five dollars on domestic cloths, 
the price of broadcloth is not advanced, and the coun» 
try pays, in increased taxes, only for the cloths of 
home manufacture. The evil of bounties is of the 
same nature, although of less extent than that which 
arises from protective duties. 



PART SECOND. 



DISTRIBUTION OF WEALTH 



It has been seen, under the head of production, that 
all exchangeable value is the result of the application 
of labor to capital. 

Where both labor and capital are the property of 
the same individual, the whole increase of value be- 
comes his exclusive property ; but, where they belong 
to different individuals, — where one advance? labor 
and the other capital, — the value must be shared be- 
tween them. 

It belongs to this part of the work to treat of the 
laws by which this distribution is regulated, in the va- 
rious branches of production. 

The subject of Distribution is different from that of 
Exchange, The former treats of the laws by which 
the immediate -producers of value receive respectively 
their portion of the result : but the latter, considering 
these values as already apportioned among their respec- 



Of what does this part of the work treat 1 

How does the subject of Distribution differ from that of ExcLianse ? 



172 OF DISTRIBUTION. 

tive owners, treats of the manner in which individuals 
make a mutual exchange of these values, and the prin- 
ciples which pegulate those exchanges. 

After value has been created by the union of indus- 
try and capital, the first object is to divide that value 
among those who have contributed to the production. 

We shall therefore next proceed to consider the 
laws which regulate this division. 

We shall first consider the relative proportions of 
the value created which different kinds of labor re- 
ceive. 

I. Let us, for example, suppose a cotton factory to 
be established where many different kinds of labor are 
required. 

Among the laborers there will be some possessing 
considerable skill and experience, acquired by pre- 
vious discipline ; and others, whose manual labor only 
will be required, which any healthy laborer can per- 
form, although possessed of no previous skill and ex- 
perience. 

Now, we know that those of the latter class will be 
paid the lowest wages ; but, where some previous 
skill and experience are required, the wages will be 
higher. 

Where previous skill and experience are required, 
and where trust and confidence also are reposed, as in 



What are the first laws to be considered, under the head of Distribution 1 
How is the subject illustrated by the case supposed 1 
What principles regulate the wages of those who perform the simple 
labor 1 



OF DISTRIBUTION. l73 

those who manage the purchases aad sales,, a greater 
remuneration will be given ; and he who has the gen- 
eral supervision of the whole, will expect to receive 
the greatest remuneration for his services. 

Suppose the factory to be a profitable establishment, 
and that, at the end of each year, after settling the 
accounts of the receipts and expenditures, there re- 
mains a certain sum, to be divided among the laborers 
and the owners, of the capital employed. Of that part 
which falls to the laborers, let us see v.'hat are the prin- 
ciples which regulate their respective portions ; for wo 
know they will not share equally. 

First, with regard to the portions of those who per- 
form the simple labor, or that which is unconnected 
with previously acqmred skill. 

Such laborers must be paid at least as much as their 
labor costs them ; that is, sufficient to furnish them 
with all the necessaries of life. For, if less be paid 
them, their number will diminish, and the class will 
soon become extinct. 

Their wages must also be sufficient to support their 
families— to support their children while unable to 
support themselves— and also to support the aged and 
the infirm. 

The wages of all the laboring classes must be ade- 
quate for all these purposes— for these are the least 
wages which they can receive, and live, and keep their 
species in existence. 

And, were the profits in any kind of industry not 
sufficient to afford the means of support to the labor- 
ers^ that branch of industry would soon be abandoned. 
15* 



174 OF DISTRIBUTION. 

It is however iiere to be remarked, that what is lie- 
cessary to the sustentation and comfort of a human 
being, differs greatly in different climates, and in differ- 
ent countries in similar climates. 

The necessary cost of living in a cold climate, is 
usually greater than the cost of living in a warm cli- 
mate. In the latter, therefore, the wages of labor will 
be less than in the former. 

Thus, in some parts of the East Indies, laborers may 
be obtained for five or six cents per day ; while in the 
United States, a laborer can barely support himself 
with fifty cents per day. 

Thus, the greater the expenses of living, the greater 
will be the wages of labor. ^ 

This general principle, the cosi of living, is there- 
fore the first and the most iaiportant principle that 
regulates the wages of labor. 

a There sometimes arises a temporary exception to this gene- 
ral principle. It sometimes happens that a high price of food 
depresses rather than elevates the scale of wages. During a 
period of temporary scarcity, when, of course, provisions are 
high, the difficulty of procuring subsistence may force more la. 
borers into the market, or exact more exertion from those already 
engaged, and thus the supply being too great for the demand, 
the wages of labor will fall. 

But the sufferings of the laboring class would, ere long, thin 
its ranks, and again reduce the supply to a level with the de- 
mand. This temporary exception is, therefore, a confirmation 
of the general principle. 



How does the cost of living vary in different climates 1 
And, how are the wagos of labor affected thereby 1 



or DISTRIBUTION. 



175 



But the wages of simple labor are often far above 
this point, and are also liable to many variations ; the 
causes of which, we will proceed to explain. 

If the profits upon industry and capital are great, 
and capital is abimdant, the wages of labor will rise ; 
for, in proportion to the amount of capital, and the 
profits to be made by its investment, the demand for 
labor will increase ; and, the greater the demand for 
labor, the greater will be its exchangeable value. 

And, if the supply of labor be small, while there is 
abundant capital for its employment, the greater will 
be the demand, and the higher the wages of labor. 

But, if the supply of labor be abundant, an opposite 
effect will be the result, and the wages of labor will 
fall. 

, The application of these principles will determine 
the wages which the common operatives in a cotton 
factory, or in any branch of business, will receive for 
their labor. 

The above are the most important principles which 
regulate the wages of simple labor. 

But there is another kind of labor that requires 
education, which of course adds t^> its cost ; and, 
where one kind of labor costs more than another, 
the wages must be sufficient to pay the whole cost, 
or that kind of labor will soon cease to be produced. 

If, in the above factory, those v/ho manage the pur- 



What circumstances cause the wages of labor to vary from tlje cost of 
liying 1 
What regulates the wages of educated lahor 1 



176 OF PRODUCTION^ 

chases and sales, had previously employed much tirae 
in commercial transactions, whereby they bad acquired 
skill in the management of such business, as such skill 
can be obtained only by costly experience, they must 
be remunerated for all their skill has cost them, or no 
one hereafter will be at the expense of acquiring it. 

And, where an apprenticeship is required in any 
trade, the time thus employedy and the expenses incur- 
red, must be met by a proportionate increase of wages 
paid for labor in such trade. 

ThuSy before a person can be admitted to the prac- 
tice of law or medicine, a previous course of study 
must be pursued, and the practitioner must be remune- 
rated for the expenses of his education ; and, as the 
time thus employed in acquiring the profession, has 
produced no revenue, he must receive an additional- 
compensation equal to what he might have obtained 
during the same time in other branches of industry. 

And, if it be a trade or profession in which few suc- 
ceed, those few will be more highly remunerated for 
their services. 

The same principles aiiect the wages of difFereni 
kinds of labor in the before-mentioned factory. Each 
kind of labor must be paid at least as much as it has 
cost : the wages will then vary from the standard of 
cost, according to the fluctuations of supply and de- 
mand, and according to the profits obtained in that 
branch of industry. 

How is it in different professions ? 

What general principles regulate the wages in the Ijef ore-mentioned fac- 
tory 1 



or DISTRIBUTION. 177 

Thus, if a certain amount of profits is to be shared 
among the laborers in the factory, their relative pro- 
portions are to be determined by the above-mentioned 
circumstances. 

In determining the wages of labor, therefore, mathe- 
matical exactness cannot be expected. All that can 
be effected, and all that is necessary, is firmly to estab. 
lish general principles, whence it will be easy to draw 
a multitude of inferences, varied and modified by cir- 
cumstances. 

II. We next proceed to consider the relative propor. 
tions of the value created which fall to the share of 
different kinds of capital employed in the production. 

All capital which possesses exchangeable value, (and 
that is the only kind of capital for the use of which 
any thing is given in exchange,) has been obtained by 
labor, and, consequently, represents a certain amount 
of labor. 

But, diflTerent kinds of capital represent different 
kinds of labor ; such as the labor of discovery — the la- 
bor of invention — and mere manual labor : conse- 
quently, the use of capital should be paid upon the 
same principles that the labor which obtained it was 



Suppose that a western fur- trader should obtain the 



Can we arrive at mathematical exactness upon this point 1 
What is the second division of the subject to be considered ? 
How has all exchangeable value been obtained ? 
Upon what principles should the use of capital be paid ? 
Illustrate the principle by the case supposed. 



178 OF DISTEIBUTION* 

aid of an Indian to assist him in transporting his furs, 
and for twenty days' labor should agree to give him 
ten pounds of powder. 

This would be the wages of labor paid for twenty 
days' service. ' 

But, suppose the trader should now require a canoe, 
the building of which would cost the Indian twenty 
days' labor. 

If he purchased the canoe, he would give him ten 
pounds of powder ; that is, allowing that the tools and 
the materials of the Indian cost him nothing, and that 
this kind of labor required no more skill than the other. 

But, if the trader only wished to obtain the use of 
the canoe, how much powder must he give for the use 
of this capital ? 

If he used the canoe but twenty days, he would not 
give ten pounds of powder for the loan of it during 
that time, if the canoe were but little injured by this 
use of it ; for then -the Indian might lend it many 
times, and receive for the twenty days' labor employed. 
in building it much more powder than he recei>ved for 
the same amount of labor employed in transporting 
furs. 

But, if the Indian knew that the canoe would be de- 
stroyed by this twenty days' use of it, he would then 
demand the ten pounds of powder. 

But, if the canoe might be employed a hundred days 
before it would be rendered useless, then for the hun- 
dred days he would charge but ten pounds of powder, 
and for twenty days only two pounds. 

Thus, the interest paid for the use of capital, is de- 



OF DISTRIBUTION. 178 

termined by the same principles which regulate the wa- 
ges of labor. For capital is labor only in another 
Ibrm.^ 



* Smith asserts that all values produced, represent pre-exerted 
human labor, or industry, either recent or remote ; or, in other 
words, that wealth is nothing more than labor accumulated, 
from which he infers the consequence that labor is the sole 
measure of wealth, or of value produced. 

Mr, Say considers this principle erroneous, and his argumck; 
is, that when once an important invention is made, the produa* 
tion resulting from it, is no longer the product of the inventor's 
industry ; that " the man who first discovered the property of 
fire to soften metcls, was not tlie actual creator of the utility 
this process adds to smelted ore." 

It is true that the labor of discovering this process, if any labor 
were required, did not create the utility here spoken of. Mr, 
Say is, therefore, correct, and I apprehend that the views of 
Mr.' Smith were also correct, although he failed to express theio 
clearly. 

Although the utility of Ihe above.mentitaned process, was not 
created by the discovery, yet the exchangeable value of smelted 
ore, is still determined by the labor required to effect that prt 
ess. And the exchangeable value I suppose to be the wealth 
here referred to by Mr. Smith. 

Very great value is often created by a very small amount of 
human industry, assisted by natural agents ; therefore, it is not 
liuman industry alone which creates this value. But it is never- 
theless true, that the exchangeable value of the commodity, is 
determined by the human industry required to be exerted. 

When, therefore, we speak of interest paid for the use o? 
capital, and regard capital as only accumulated labor, we con- 
sider merely the exchangeable value of that capital, which is all 
oiat regulates its rate of interest. 

Por, however great the intrinsic value of the capital may be» 



180 OF DISTRIBUTION. 

In considering the wages paid for labor, we saw 
that different kinds of labor were paid different wages. 

It is the same with the interest paid for the use of 
capital. If it be a kind of capital which is obtained 
by mere manual labor, other things remaining the 
same, the lowest rate of interest will be paid for it. 
But fluctuations of supply and demand will change the 
rate of interest, upon the same principles that the same 
causes will change the wages of labor. 

But if the capital be the result of talent, skill, and 
experience, it will obtain a higher rate of interest. 
Therefoxe, the general principle which regulates the 
interest paid for the loan of capital, is the cost of its 
production. 

But there are causes which greatly vary the rate 
of interest from this standard. 



while it costs nothing, that is, while no labor is required to pro- 
duce it, it is evident that nothing will be given for the use of 
such capital, any more than for the use of air and sunlight. 

Therefore, we may with perfect propriety consider capital or 
wealth as accumiilated labor, for that portion of wealth which 
is not derived from human industry, has no exchangeable value 
whatever. 

But, as this exchangeable value varies from the cost of pro- 
duction, by the fluctuations of supply and demand, so the same 
fluctuations similarly affect the rate of interest paid for the use 
of the capital, as will be seen. 



Do the principles which regulate the wages of different kinds of labor, dif 
far from those which regulate the interest of different kinds of capital 1 
What.th6n, is the general principle which regulates the interest of capita? 



OF DISTEIBX^TION. 181 

/■ 

1^\\'Q first are the fluctuations of supply and demand, 
which are very evident, and require no comment. 

The second is risk. When a man loans capital, 
there is always a risk of his not being repaid when he 
himself needs his capital, and also a risk of his never 
being repaid. And the greater this risk, (whether it 
depend upon the character of the borrower, the inse- 
curity afforded to property by government, or the dif- 
ferent modes of employing the capital,) — the greater 
will be the rate of interest. 

Thirdly, the rate of interest is varied by the different 
degrees of the productiveness of capital. The different 
degrees of productiveness vary the demand ; and the 
ratio between supply and demand, produces the same 
effect upon the rate of interest as upon every thing 
else. 

Kent, or the price paid for the use of land, is regu- 
lated by the same principles that regulate the interest 
upon other kinds of capital. 

He who hires land for the purpose of employing it 
in production, pays according to its productiveness ; 
that is, according to the profits which may be derived 
from it. 

The price paid for the use of money, is called in- 
terest, and is usually estimated in money, because those 
who wish to borrow capital, usually borrow money in 
the first place, wherewith they obtain the capital. 



What causes often vary the rate of interest from this standard 1 

What is rent, and how regulated ? 

What is interest ? 

How is capital usually borrowed ? 

16 



182 OF DISTRIBUTION. 

But it is in reality capital that is wanted, and no? 
money. When, therefore, the interest of money is 
spoken of, it must be borne in mind that it is the same 
thing as the interest of capital, or the price paid for 
the loan of capital. 

But a man is allowed to loan his capital, and to re- 
ceive for its use what others are willing to give. But 
when he converts his capital into money, and then 
loans it, why should he be restricted by law, as he is 
in all civilized countries, in the price which he may 
receive for the use of it ? Why the restriction in one 
case more than in the other 1 

If the legislature should enact that a man shall not, 
under severe penalties, receive more than a certain 
amount of compensation for the loan of land, farming 
utensils, &c., all would say that the law unjustly inter, 
feres with the right of property. But, if the individual 
convert his property into money, and he be restrained 
in the loan of it, is not the case the same ? 

But the real price of capital or money, or its real 
worth and value when employed in production, cannot 
be fixed by law ; — why then should the rate of inter- 
est remain the same, when capital is so much more 
valuable at one time than at another 1 

Political economists have generally agreed that laws 



Does the interest of monejf differ from tlie interest or price paid for the use 
of capital 1 

What difference have the laws made between the price paid for the use of 
capital and that paid for the use of money 1 

Can the feal price or real profit of capital or money be fixed by law ? 

What have political economists generally thought of laws regulating the 
rate of interest 7 



OP DISTRIBUTION. 183 

regulating the rate of interest are an unjust interfer- 
ence with the right of property, and injurious to the 
prosperity of a country. 

It is generally thought, on the other hand, that laws 
regulating the rate of interest prevent great fluctua- 
lions in the price of money, and that if there were no 
such laws, capitalists would often take advantage of thf3 
necessities of the borrowers, to extort from them an 
unjust and oppressive price for the use of money. 

But fluctuations in the price of money are probably 
more likely to arise when the rate of interest is estab- 
lished by law. Suppose the established rate of interest 
be seven per cent., while capital invested in most kinds 
of business is worth tvv^elve per cent. 

In such case, those who have money will not loan it 
for seven per cent., but will either loan it at a higher 
rate and find some method of evading the law, as is 
often the case ; or they themselves will invest it in busi- 
ness, and thus receive the worth of it, viz., twelve per 
cent. 

Now, the result is the same to the community, whe- 
ther the capitalist receives twelve per cent, for his 
money when he loans it to another, who will invest it 
in business ; or whether he himself thus invests it, and 
thus obtains its worth. 

But the effect of the law is to compel the capitalist 
to invest his own capital in business, for which he may 



What prevalent opinions are opposed to this 1 

How are these objections answered; and what is the effect of the law 
regulating the rate of intereet, upon the capitalist ? 



184 OF DISTRIBUTION. 

have no inclination and little skill, or to receive for it 
less than its real worth, and to surrender its profits, 
without compensation, to another. 

Now, when the profits upon capital rise above the 
legal interest, there will arise a great demand for capi^ 
tal, but no one will loan it at the legal rate, because it 
is worth much more. There is then a scarcity of 
capital, — no supply, and the demand increasing. 

This increases the, price which men are willing to 
give for the loan of capital, and those who are the 
least conscientious will break through the "< cobwebs 
of the law," and avoid the penally, by loaning at the 
legal rate, and receiving a present, or bonus, for the 
favor, in advance. This is offering a premium to 
those who are sufficiently daring to break the law, and 
artful enough to screen themselves from its penalty. 

The law, then, establishing the rate of interest, has 
often a manifest tendency to increase those fluctua- 
tions to which the rate of interest is liable, and to 
bring the law into disrepute, by offering a premium to 
those who will break it. And it is well known to 
business men, that when the profits upon capital rise 
above the legal rate of interest, the law becomes a dead 
letter. 

But it is also said, that if there be no legal interest 
established, capitalists will often take advantage of 
the necessities of the boiTowers. The same objections 



What will be the result when the profits of capital rise above the legal 
rate of interest 1 

What, then, is the effect of the law upon fluctuations in tlie rate of inter- 
est 1 



OF BISTIKBUTIOX. 185 

may be urged against the loan of other kinds of capi- 
tal as against the loan of money. If money, or other 
capital, were in the hands of a few wealthy capitalists 
only, they might monopolize the loan of it, raise the 
interest, and thus seriously oppress the borrowers. 

So far as there is danger from this source, it is a 
weighty argument in favor of establishing the rate of 
interest. Perhaps this evil might occasionally arise in 
individual cases, in the absence of such a lav/. 

But in this country capital is so universally dissemi- 
nated among all classes, that this evil is little to be 
feared. Competition among those who have money 
or other capital to loan, would probably keep the rate 
of interest nearly upon a par with the profits to be made 
by the employment of capital. 

Whether, then, the rate of interest should be estab- 
lished by law, or left to be regulated by the supply, the 
demand, and the profits of money, that is, of capital, 
is a question that would be attended with no diversity 
of opinion, were it not for the apprehended danger that 
a few capitalists would monopolize the loaning of 
money, and thus acquire the power of oppressing the 
borrowers. 

This danger would doubtless be the greatest in a 
country where property is the most unequally distribu- 
ted. But it is evidently proper for the law to define 
what shall be the rate of interest, when nothing is said 
on the subject in the contract. 



What is the principal objection to the absence of a law regulating the rate 
f interest, and how considered 1 
What, then, alone occasions tlie diversity of opinion upon this subject ? 

16* 



186 OF DISTSIBUflOr^. 

Bat the rate of interest paid for the use of money, 
is by no means a certain indication of either the pros- 
perity or the adversity of a country. For, if the rate 
of interest be raised by an increase of risk, as this rise 
of interest benefits no one, it is an indication of ad- 
versity. But, on the other hand, if the rise of interest 
be occasioned by increased productiveness, as where 
the employment of capital affords greater profits than 
usual, then it is an indication of national prosperity. 

If the rate of interest fall, on account of the diminu- 
tion of risk, it is then an evidence of increasing pros- 
perity. But, if the fall be occasioned by a diminution 
of the profits formerly gained by the use of capital, it 
is then an evidence of national adversity. 

Thus, in England, a large amount of capital for 
which an interest is paid, is employed in manufactures ; 
but, if other nations should henceforth make their own 
manufactures, the capital thus employed in England 
would be thrown out of employ, and the rate of inter- 
est paid for capital would fall. The fall, in this case, 
would be an evidence of national adversity. 



Is the rate of interest any sure indication of either national adversity or 
prosperity ? 
Foi- what several reasons is it not ? 



PART THIRB. 



EXCHANGE OF WEALTH 



Exchange is a transaction in which two individu- 
al ? mutually and voluntarily transfer to each other the 
ri^ht of property, to a given amount, either in capital 
or labor. ^ 

Exchange is of three kinds, viz : — 

1st. Barter in general, or exchange in kind. 
2d. Exchange by means of a metallic currency. 
3d. Exchange by means of a paper currency. 

» Wayland, 



What is exchange 1 

t>f how many kinds is exchange, and what are they 1 



188 OF EXCHANGE. 



SECTION^ I 

OF BARTER IN GENERAL, OR EXCHANGE IN 
KIND. 

I. The necessity of Exchanges. 

As men are constituted with different aptitudes for 
different pursuits, and with different dispositions to- 
wards those pursuits, it will be an advantage to all if 
each one will devote himself to that occupation for 
which he is the best adapted, 

Thusy one man has a talent for mechanical pursuits, 
one for agriculture, another for manufactures, and an- 
other for navigation. And if each be allowed to pur- 
sue the occupation for which he is best adapted, a 
greater amount of productiveness will be the result ; 
and the same with nations, as we have before seen. 

There are products v/hich are natural to one coun- 
try and not to another ; and no country possesses 
advantages for producing every thing. But each indi- 
vidual and each nation wishes to obtain the products 
of other individuals and of other nations, and this can 
be effected only by an exchange of products. 

We have seen that productiveness is greatly in- 
creased by division of labor. The same principle 
Applies to exchange. Were each individual obliged 



What kind of labor is the most advantageous for each individual, and for 
the whole community 1 
What occasions the necessity for exchanges 1 
What is gained by division of labor in exchanges 1 



OF EXCHANGE. 189 

to make all his own exchanges, there would be a great 
loss of time and labor, and it would be better for the 
whole if a part of a society would devote themselves 
exclusively to the business of making them. 

Hence, we see the need of merchants, who effect ex- 
changes between inhabitants of the same country, or 
between different nations. 

If the citizen who now purchases his grooeries and 
drygoods of the merchant, were obliged to go to the 
original producers of these articles, and there exchange 
some products of his own for them, the labor of ex- 
change would be immense, and the cost of the articles 
inestimable. 

The wholesale merchant and the importer conduct 
the exchanges between different nations, and the retail 
merchant purchases of the former, or of the manufac- 
turer, and sells to individuals in smaller quantities. 
By this saving of time and labor, the exchanges in- 
crease the cheapness of articles, and thus add to the 
productiveness of industry. 

Although exchange simply, v/hen uncombined with 
the labor of transportation, adds nothing to the value 
of a commodity, yet it adds greatly to the convenience 
of both buyer and seller. 

Thus, suppose two individuals, one of whom has two 
knives, and the other, two pencils. 

As one of each is useless, an exchange will be better 
for both. And although no value has been added to 
the articles by the exchange, yet each individual is 

■ . ____ : „ 

Does the simple exchange of a commodity add to its value 1 



190 OF EXCHANGE^ 

richer than he was before, for he is now enabled to 
gratify a greater number of desires. 

It is thus with nations. A nation exchanges com- 
modities which it does not need, for those of which it 
has need. 

Thus, Cuba produces more cotton and sugar than 
she requires for her own consumption, and New- York 
raises more wheat than she needs, and a mutual ex- 
change of products will be advantageous to both coun- 
tries. 

This illustration is sufficient to show the fallacy of 
the notion formerly entertained, that by exchange only 
one party is benefited, and that what one gains another 
loses. 

As a simple exchange, therefore, confers no new 
value upon the product, the exchange should be effecte^l 
with as little loss of time as possible, in order that the 
article may be mbre speedily applied to the use for 
which it was designed. 

Also, a delay in making the exchange adds to the 
price which must be paid for the article. This addi- 
tion is the interest on the capital advanced. 

Thus, if a merchant purchase to-day a thousand 
dollars worth of goods, and sell them to-morrow, he 
charges the purchaser for his labor and skill, and adds 
to the sum the interest of only one day upon his 
capital. 

But, if he retain the goods a whole year, and then 

How does it add to the convenience of individuals and nations ? 

How, then, should exchanges be effected 1 

What is the effect of a delay in making exchanges 1 



OP EXCHANGE 191 

dispose of tUsn, he charges for his labor and skill the 
same as before, and adds to the sum the interest on 
his capital for a year. 

Besides, if the merchant dispose of his goods within 
a week after the purchase, he may reinvest the same 
capital, and exchange it fifty times in the course of a 
year, and thus receive a profit on his skill and labor 
fifty times a year. 

Thus, rapid exchanges are advantageous both to the 
buyer and the seller, and, consequently, to the whole 
community.^ 

As individuals exchange for the pui-pose of improving 

'^ Thus, if French silks were to be imported to New- York, the 
sooner they were disposed of, the better for all parties. But, 
should they be carried first to New-Orleans, thence up the Mis. 
sissippi, and across the country, to New- York, the producer or 
the exporter of the silks must charge the New- York merchant 
for all this extra labor of exchange and transportation, and~the 
New- York merchant must charge the consumers a higher pricej 
Which would be so much loss to the latter, and the demand for 
the article would also be diminished ; less silks would be dis. 
posed of, which would injure the business of the producer, the 
exporter, and the merchant. 

The sooner the producer gets his returns for his silks, the 
sooner he can recommence a new and equally lucrative opera- 
tion. 

All unnecessary exchanges and transportation are no other 
than the expenditure of unproductive labor, which must be paid 
for, but which adds no new value to the product. 



Why, then, arc rapid exchanges advantageous to ail 1 
For what do indiriduals exciiange, and how only can they effect their 
object? 



192 OF EXCHANGE. 

their condition, if they really exchange articles of less 
utility for articles of greater utility to themselves, the 
more numerous their exchanges, the more generally 
will their condition be improved. And, whatever pro- 
motes such exchanges, promotes the happiness and 
prosperity of a people. And to this end, there must be, 

1st. A desire for exchange, which will depend prin- 
cipally upon the intelligence of the people. 

2d. An ability to exchange, which will depend upon 
the productiveness of their labor and capital ; and, 

3d. The security of property, which will depend 
apon their individual and social morality. 

That is, exchanges will be frequent in proportion 
to the intelligence, wealth, and moral character of a 
people. 

II. Barter in general, or Exchange in kind. 

It has been seen, that the general rate at which pro- 
ducts are exchanged, is not quantity for quantity, but 
value for value ; because a given amount of labor will 
procure a much larger amount of some products than 
of others. 

The rate of exchange, therefore, is regulated by 
the amount of labor which is required to produce the 
article;^ 

^ Although exchangeable value is regulated by the cost of 
prodaction, exchangeable value is not the cost of production, as 

Upon wbat do the frequency of exchanges depend 1 

What is the general rate at which products are exchanged 1 

By what is the rate of exchange regulated 1 How illustrated ? j 



OF EXCHANGE. 193 

If an ounce of gold may be procured by one day's 
!«.bor, and a hundred weight of iron may be obtained 
by the same amount of labor, the gold is said to be 
" of the same value," or, in common language, " worth 
a« much" as the iron. 



has been frequently asserted. The cost of an article means 
simply the amount of labor expended, or the expense incurred 
in its production : but the exchangeable value of the article, or 
the price at which it is ordinarily disposed of, is something more 
than the cost of its production. 

Cost and exchangeable value are different things. If they 
were the same things, commodities would be disposed of merely 
for what they cost ; that is, in manufactures, for instance, the 
money received by the sale of an article would only be equal to 
that expended in its production, and thus the manufacturer 
would gain nothing. 

But this is not so. In all profitable business, the cost of pro- 
duction must be somewhat less than the exchangeable value of 
the product. 

When a merchant imports a cargo of teas from the East 
Indies, he must first estimate what the cargo has cost him, and 
also the interest on the capital employed, before he can deter- 
mine upon the pi-ice ; that i«!, upon the exchangeable value at 
which he ought to dispose of it. 

For this purpose, he must sum up the wages which he pays 
for labor — the amount which he exchanges for tea — the interest 
on the sum thus advanced — risk of the ship and cargo, or the 
premium, paid for their insurance — the interest on the capital 
advanced in fitting out the ship; and, lastly, the wear and tear 
©f the ship, &e., or the repairs required during the voyage. 

All of this is equivalent to the direct cost of production, added 
to the interest of the capital advanced ; and this, which is the 
whole cost or expense incurred, must be added to the projU 
17 



194 0F EXCHANGE. 

Although, if by ehanee the ounce of gold should he 
found in its native state, it would be worth just a® 
much, although do labor were req^uired to produee it ; 
for the amount found,^ when compared with the whole 
amount which required labor for its production, would 
be so small, as not to affect the general principle. 

But, as the chances of obtaining gold without labor 
increased, the value of gold would proportionably 
diminish. 

In all exchanges,, therefore, we may regard it as the 
labor which is exchanged, and not the intrinsic values 
of the commodities. For the intrinsic value of a 
hundredweight of iron is inestimably greater than the 

which the importer makes by his sales, aiid w© then have the. 
exchangeable value of the cargo. 

Capital, united with industry,, together with the interest upoa 
th« carpital used, which here goes to increase the exchangeable, 
value of the product, may be said to be the wages paid for th& 
use of capital. Thus, capital and industry both labor in pro- 
duction, and the same rules of supply and demand, regulate the 
wages oflioth.. 

In the case supposed above, if the individual engaged in the 
business of importing tea, had hired the capital, which he was 
to refund, together with the interest, this whole amount, interest 
and all, might be reckoned as so much labor exerted towards- 
the cost of production, for labor might pay this interest. 

But the exchangeable value of the tea, must still t(e in ad- 
vance of the cost of production, if the business were profitable^ 
and must be estimated at the cost of production, added to the 
profit made in the business,.. 

What then, may we suppose to he exchanged in all cases 1: 



OF EXCHANGE. 195 

value of an ounce of gold. Mankind could dispense 
with the latter far more conveniently than with the 
former. 

In the earliest stages of society, all exchanges were 
made in kind -that is, by barter. If one savage 
wished to obtain a bow and arrow from another, he 
was obliged to give in exchange some product of his 
own. 

But, as exchanges increased in number and amount, 
many disadvantages would arise from this mode of 
exchange. 

We have seen how division of labor increases pro- 
ductiveness, the effect of which is to multiply products 
in the hands of the producer. Thus, hats accumulate 
in the hands of the hatter, bread in those of the baker, 
and shoes in those of the shoemaker ; and the case is 
the same throughout all the trades and professions. 

But, although each individual produces but one kind 
of commodity, he wishes to obtain a portion of the 
products of every other producer. The hatter has 
hats which he wishes to exchange for bread and shoes ; 
but, perhaps both the shoemaker and the baker are at 
present supplied with hats, and wish for some other 
article — perhaps fuel. 

The hatter must, then, find some one who v/ants 
hats, and who has fuel to dispose of; and he must thus 
obtain the fuel ; and then, by a second exchange, he 
will be able to obtain the required articles. 



How were exchanges made in the early stages of sociMy ? 
What inconveniences would arise from this mode of exchange? 



196 



OF EXCHANGE. 



But here is a loss of time, which must be added to 
the cost of the hnts, or the hatter will be the loser. 
Hats will then become dearer, and this will be a loss 
to the consumer or purchaser ; and as they become 
dearer, the demand for them will lessen, which will be 
a loss to the producer. 

But there is another difficulty which would attend 
exchange in kind. If the hatter wish for a penknife, 
or any article of less value than a hat, how is he to 
obtain it ? He cannot divide a hat, but must find some 
one who will give in exchange for it such articles as 
the owner of the knife may desire, and which are, 
moreover, capable of being divided without injury. 

But material products are not the only things to be 
exchanged. One great article to be exchanged, is 
labor. If exchanges were made wholly in kind, it 
would frequently happen that the laborer would not be 
able to labor for those who needed his services, be- 
cause they could not give him in exchange such arti- 
cles as he wished. The lawyer would be obliged to 
receive his fees in such commodities as his client pro- 
duced ; and the same with physicians, and other pro- 
fessional men. 

. The effect of these inconveniences in makino- ex- 
changes would be, that fewer exchanges would be made, 



What would be the eSbct of a loss of time required in eschanging, upoa 
the price of the article ? 
How would both the consumer and producer be affected ? 
What difficulty besides the loss of time would attend exchange in kind 1 
Are material products the only things to be exchanged ? 
Whut difficulties, then, would the laborer encounter 1 



OF EXCHANGE. 197 

and every person would be his own farmer, mechanic, 
and manufacturer, and there would be no division of 
labor, except in its most imperfect form. 

Now, these inconveniences might be remedied if 
there were some appropriate article that was univer- 
sally wanted, and which every person would be willing 
to receive in exchange for such products as he wished 
to dispose of. And then, by exchanging for this arti- 
cle, the producer might obtain, by another exchange, 
whatever he needed. 

The necessity for such an article, has led to the 
adoption of some medium of exchange even among the 
rudest nations. In pastoral nations, cattle were fre- 
quently used as a circulating medium. Property was 
estimated as being worth so many head of cattle. Thus, 
Homer mentions that the armor of Diomede cost nine 
oxen. 

Some of the baser metals were afterwards used. The 
Lacedemonians, under Lycurgus, established iron as 
the circulating medium. 

Shells and beads were used as money by the North 
American savages. 

The Romans used copper or brass, in the early ages 
of their history. 

But as these materials became more abundant, and 
consequently depreciated in value, gold and silver 



What would be the general effect of these inconveniences in making ex- 
cli anges 1 

How might these inconveniences be remedied 1 

What articles have been used as a medium of exchange at different pe- 
riods? 

17* 



198 OF EXCHANGE. 

were substituted in their place. At first, gold and sil- 
ver were weighed at every exchange ; but as this re- 
quired much time and care, they were next fashioned 
into coin, and the value or weight of each piece stamped 
on the face of it. 

Gold and silver are now used for the purposes of 
money throughout the civilized world. 

Copper is used only in the payment of sums less in 
value than the lowest denomination of silver coin. 



SECTION II. 

OF EXCHANGE BY MEANS OF A METALLIC CUR- 
RENCY. 

I. Of the qualities necessary to that which constitutes 
the circulating medium. 

The design and use of money, or of whatever is used 
as a circulating medium, is to facilitate exchanges. 
Whatever instrument best accomplishes this purpose, 
should be selected ; and the preference is now univer- 
sally given to gold and silver. Those qualities in gold 
and silver which have given them this preference, will 
be seen by inquiring into the qualities necessary to 
constitute a circulating medium. 

1st. The article used as a circulating medium must 
be universally desired as such ; that is, it must be an 



How were gold and silver first used 1 

What is the design and use of money 1 

What is the first requisite for the ai'ticle used es a circulating medium 1 



OP EXCHANGE. 199 

article which every one is willing to receive in ex- 
change for such products as he wishes to dispose of. 

This article or instrument for facilitating exchanges, 
is called money. And if this article be not difficult of 
transportation, it is evident that every one will be 
willing to receive it in exchange for his own products, 
if he can obtain as much for his money as he could 
have obtained for the products which he disposed offer 
the money. 

Thus, a farmer exchanges a bushel of wheat for a 
dollar, because a merchant will give as much tea or 
sugar for a dollar as he will give for a bushel of wheat. 

And now the question naturally arises — what is it 
that renders money so valuable to community ? We 
answer—the same that renders a plough, or any other 
farming utensil, valuable to a farmer. The earth must 
he cultivated, and a plough is an instrument for culti- 
vating the earth, and it is desired and is valuable for 
that purpose : — it greatly increases the productiveness 
of labor. 

But it requires labor to make a plough, and if the 
farmer exchange his products for it, he must give 
those articles in exchange which have cost him as 
much labor and skill as the plough has cost the me- 
chanic. 

We have said the earth must he cultivated. So also 
exchanges must be effected. Now, money is an in- 
strument for facilitating exchanges, and it is desired 



Wliy are persons willing to exchange tiieir ptsductg for money 1 
What jg it that renders money so valuable to community ? 



200 OF EXCHANGE 

and is valuable for that purpose. In its department 
of labor— -that is, in exchanging — it greatly increases 
the productiveness of labor. 

But the instrument, viz., money, cannot be obtained 
without labor, and its exchangeable value, like the ex- 
changeable value of other articles, is regulated by the 
cost of production, varying, as other products vary, by 
fluctuations in supply and demand. 

If in New-York a bushel of wheat is exchanged for 
a dollar, it is because the labor expended in mining, in 
transporting the silver from the mine, and in coining, 
is equal to the labor expended in raising the wheat, and 
in transporting it to the place of exchange. 

Thus, the exchange of silver and wheat is regulated 
by the same principles which regulate any other ex- 
changes. And the exchangeable value of the precious 
metals, like other commodities, is likewise influenced 
by the fluctuations of supply and demand. If more 
gold and silver are obtained by the same amount of 
labor, their exchangeable value becomes less, that isy 
more money will be given in exchange for other pro- 
ducts. 

This was the case after the discovery of the mines 
of South America, by which the amount of the pre- 
cious metals was greatly increased. And if, by any 
reason, money becomes scarce in a country, so that 
there is not a sufficient quantity to effect the exchanges, 



What regulates the exchangeable value of money 1 
How is the exchangeable value of th» precious metals varied by fiactua- 
tions in supplf aad demand 1 



OF EXCHANGE. 201 

tfien there will be an increased demand for money, and 
its exchangeable value will rise :— the same as it* there 
were not a sufficient supply of ploughs in the country, 
— the demand for ploughs would increase, — their value 
would rise, and a greater amount of other products 
would be given in exchange for them. 

2d. The instrument used as a circulating medium 
should not be liable to sudden fluctuations of value, 
occasioned by variations ir^ the cost of production. 

Suppose that an individual has exchanged to-day a 
quantity of wheat, which cost him one hundred days' 
labor, for a quantity of silver which cost the same 
amount of labor. The individual receiving the silver 
expects that he can exchange it for other products 
vv^hich cost one hundred days' labor. 

But, if in a few days silver could be produced by 
one half the amount of labor that it formerly cost, the 
value of silver would fall, and ho who had exchanged 
wheat for silver, would find that his silver would obtain 
for him, in exchange, products which had cost only 
fifty days' labor. 

Hence, vegetable products, the amount of which is 
liable to vary under the same amount of labor, could 
never be employed as money. But gold and silver 
are not liable to these sudden fluctuations, and on 
this account they are better adapted for a circulating 
medium than any other articles. 

3d. If the article used should contain a large amount 



What is the second requisite for a good circulating medium ? 

Why might not vegetable products be employed as a circulating medium I 



^02 OF EXCHANGE. 

of value within a small bulk, it would be a great ad- 
vantage, by thus saving the labor of transportation. 
The iron money of Lycurgus would be a very inconve- 
nient circulating medium in the present day. 

4th. The substance should be capable of division 
without loss of value, in order that persons may pur- 
chase in as small quantities as they choose. 

5th, The substance should be of such a nature that 
it can be easily verified, and distinguished from coun- 
terfeit imitations. Platina is more costly than silver, 
but in appearance it, very much resembles some of the 
baser metals. This is an objection to its use as a cir- 
culating medium. But gold and silver are easily veri- 
fied, and counterfeit imitations are easily detected. 
We meet with no counterfeit gold coins, and with but 
little counterfeit silver money. 

And lastly, it may be remarked, that gold and silver 
are used as the instruments for facilitating exchanges, 
because they are the best and most convenient instru- 
ments for that purpose, and not because government 
has arbitrarily made them the circulating medium. As, 
under every government, the people should have the 
liberty of making what exchanges they choose, the gov- 
ernment should not interfere with the instrument which 
the people have selected for this purpose. 

Any laws directing the people m what manner they 



What is the third requisite for a convenient circulating medium 1 The 
fourth ■? The fifth ? 

Are gold and silver used as the circulating medium because government 
has arbitrarily made them such 1 

In what manner should government not interfere with the eirculating me- 
dium 1 



OF EXCHANGEr 208 

shall use the instrument, money, is as great an interfe- 
rence with the liberty of exchanging, as if government 
should direct the farmer to use his ploughs in a particu-. 
lar manner: this would be an interference «with his 
I'ight to cultivate the soil as he may deem expedient. 

If one citizen wishes to purchase any articles pfj 
another citizen, he should have the liberty o^ exchang- 
es he pleases ; or if he wishes to exchange his specie 
for foreign products, government should not prevent 
him. 

And if it be admitted (as it certainly will be under a 
free government) that citizens have the right of keep- 
ing or exchanging their property as they please, it fol- 
lows that goveniment has no right to prevent the im- 
portation or exportation of specie. 

But there is one kind of agency which government 
may properly exert over the circulating medium. Gold 
and silver being used as a circulating medium hy com- 
mon consent, the agency of government should be ex- 
erted to render the circulating medium such as the 
people wish it, and so to prepare the substance em- 
ployed that it may be used with the greatest common 
advantage. 

To accomplish this object, the substance which has 
been thus universally chosen for the purposes of ex- 
change, should be made a legal lender for the payment 
of all debts. That is, if a debtor offer his creditor 
legal money in payment of a debt, the latter is bound 
to receive the same, or free the former from his obliga- 

What agency^ then, may government properly exert over it t 



204 OF EXCHANGE. 

tioj^ unless some other article had been preyiously 
agreed upon between the parties. 

Government should also regulate the coining of 
money, Ijecause it is a work that requires great fidelity, 
and could not be safely intrusted to individuals. 

The business of coining comprises whatever relates 
to the uniform purity of the metal, and to such size and 
form of the material as shall best adapt it to the pur- 
poses of exchange. 

But the power of government should never be exerted 
so as to interfere with the right of individuals to ex- 
change their property with any one and for any thingt 
as they may think for their advantage. 

IT. Of the amount of money necessary to effect the ex- 
changes of a community. 

Whatever be the instrument used in making ex- 
changes, its value, at any one time of exchange, must 
be equal to the value of all the commodities exchanged 
for it. 

Suppose the precious metals were the only mstru' 
ments used for tjiis purpose. But yet the value of the 
precious metals in community is not equal to the value 
of all the other commodities. 

The value of the precious metals would be equal to 
the value of all the other commodities, if all exchanges 
were made in money, and made at the same instant. 

But only a very small portion of the commodities 



Why is not the value of the precious metals in community equal to the 
Ifslue of all the other commodities 1 



OF EXCHANGE. 205 

once exchanged during a year, are exchanged at the 
same time. Consequently, a small amount of money, 
if used many times, may exchange a large amount of 
property. 

Thus, if A and B have each one thousand dollars 
worth of property to exchange with each other, ten dol- 
lars in the hands of either party may be sufficient to 
effect the exchange of two thousand dollars worth of 
property. 

Thus, A, having the money, may purchase of B fen 
dollars worth of his property, and B may then use the 
same money wherewith to purchase of A ; and thus, 
by one hundred mutual exchanges, the whole work 
would be accomplished. 

It is the same with the exchanges of community. A 
single dollar may perhaps in one year be the instru. 
ment of exchanging values of a thousand times its 
amount. 

And, as many exchanges are made in Jdnd, this also 
diminishes the amount of money required. Where 
wheat is exchanged for cotton, if the values exchanged 
are equal, no money is required to accomplish the 
work. 

Between nations also most exchanges are made in 
kind. A nation that possesses no mines of the pre- 
cious metals, can obtain the products of another nation 



In wh3t manner is a small amount of money made to exchange a large 
amount of property 1 

What kind of exchange furthermore diminishes the amounf of money re- 
quired? 

How are exchjmges made between nations 1 

18 



206 OF EXCHANGE. 

only by its own labor, which must be employed in the 
creation of products which may be given in exchange. 

If, for instance, New-York purchase of Liverpool, 
New-York must eventually pay the debt in American 
products. If it pay Liverpool in gold and silver, these 
articles must previously have been obtained by sending 
American products to some other nation. 

Thus, one nation cannot exchange with another to 
a greater amount than it has products to give in ex. 
change ; and we see what it is that creates a demand 
for foreign products. 

The productiveness of one country opens a demand 
for the products of another. For it is the same with 
nations as with individuals : they cannot purchase un- 
less they have something to give in exchange. 

The prosperity or the adversity of one must, therefore, 
go hand in hand with the prosperity or adversity of 
another. Should the products of America fail, and 
famine desolate the land, England would find no market 
here for her manufactures ; nor, under such eircum. 
stances, could England escape the evils that afflicted 
us. 

The value of the specie used in any country for the 
purposes of exchange, is therefore necessarily small in 
proportion to the whole value of capital. In Great 
Britain, some writers, have estimated it at the 50th, 
and others at the 127th part of the whole capital. 



How is the prosperity of one nation allied with that of another ? 
What estimates have been made of the relative value which specie bears 
to other capital 1 



OF EXCHANGE. 207 

But the amount of circulating medium required in 
any community while its value remains the same, va- 
ries vrith the amount of products to be exchanged. 
While the amount of exchanges remains the same, the 
same value in specie will always be required, and no 
greater value can be used. If a greater amount of 
specie be introduced, its value will fall, and if the 
amount be diminished, its value will rise. 

It is the same with money as with other instruments 
in other kinds of labor. If more ploughs be intro- 
duced than are necessary for agricultural purposes, 
their value will fall ; and if the number of ploughs be 
diminished, their value will rise. 

Nothing is gained by introducing more ploughs than 
are needed, as they must be sent from the country, or 
they will remain on hand, unproductive capital. And, 
if more money be introduced than is necessary for the 
purposes of exchange, it must either be sent abroad 
again, or remain on hand, unproductive capital. 

If the amount of production in a country be greatly 
increased in any one year, a greater amount of money 
will be required to make the necessary exchanges ; or, 
if the amount of money remain the same, its value will 
rise. 

But the very nature of the case will provide its own 



Upon what depends the amount of circulating medium required in any 
community 1 

What will be the effect of an increase of productiveness upon the amount 
required 1 

How will the want of money be remedied in this case 1 



208 OF EXCHANGFJ* 

remedy : specie will be imported to supply the defi- 
ciency, or the domestic products will be exported, un. 
less there has been a corresponding increase of produc- 
tiveness throughout other nations. 

Let us suppose that there has been during one 
year a great increase of productiveness in the State 
of New-York alone, throughout all the departments of 
agricultural, manufacturing, and commercial industry. 
Every thing would now be cheap. If wheat were 
formerly sold for two dollars per bushel, it could now 
be obtained for one. 

Suppose that, in ordinary seasons, six bushels of 
wheat, or their equal in value, six dollars, could obtain 
a yard of broadcloth in Liverpool, and that it is imma- 
terial to the New-York merchant which he sends in ex- 
change. 

But, during this very productive season, the New- 
York merchant finds that six dollars and twelve bush- 
els of wheat are of equal value in this country, but six 
bushels of wheat will obtain as much broadcloth in 
Liverpool as six dollars will purchase. 

The New-York merchant will now find it greatly to 
his interest to export wheat in exchange for broad- 
cloth, and therefore the specie, which is now needed at 
home, will not leave the country. 

Thus, the want of money will soon be remedied by 
the exportation of that superfluity of productions 
which has occasioned the want. 

This will be the case in every country, whenever 
an increase of productiveness shall have created a 
demand for money. 



OF EXCHANGE. 209 

Thus, the interest of the merchant, and of every 
other individual, is the same as the interest of the 
nation. What is favorable to the former, is also 
favorable to the latter. 

Also, if, during such a season, other nations wish 
to obtain our products, it will evidently be to their 
interest to send specie in exchange, because specie is 
scarce here, and products abundant ; — specie is in the 
greatest demand, and we will give more for that than 
for any other article. 

It is also evident that an unproductive season will 
render money comparatively more abundant than usual ; 
— exchanges being less in amount, there will be less 
demand for the instrument used in exchanging. Money 
will therefore be cheap, and every thing else dear. 
We shall have more money than can be used in ex- 
changing, and shall be in greater need of other pro- 
ducts. 

But the nature of the case provides its own remedy. 
The New-York merchant now finds that twelve dollars 
and six bushels of wheat are of equal value to him in 
New-York, but the twelve dollars will obtain two yards 
of broadcloth in Liverpool, while the six bushels of 
wheat will obtain only one. 

It is now for his interest to export the specie, and 
it is also for the interest of the whole country. Na- 
tional and individual interests are the same. The 



Wliat will be the effect of an unproductive season upon the amount of 
money required t 
How will tliis case provide Its own remedy 1 
18* 



210 or EXCHANGE. 

same prlnelples in political economy should regulate 
the management of the affairs of both. 

When, therefore, we speak of the abundance or 
scarcity of money, we are to understand by the terms, 
not the real amount of money in community, but the 
relative proportion which it bears to the products 
required to be exchanged. 

There is an abundance of money when there is more 
than a sufficiency for the purposes of exchange — the 
same as a community has a superabundance of vehicles 
for transportation when there is more than a sufficiency 
for transporting all its merchandize ; but should its 
merchandize be increased, the same number of vehicles, 
which was before an abundance, might become a 
scarcity, a 

Abundance of moneys and scarcity of money, are, 



^ There is this difference, however, between the two cases : — 
If the amount of merchandise ba increased, the same number 
of vehicles cannot accomplish th§ whole work of transporta- 
tion. 

But if a million of dollars were required to effect the ex- 
changes of a country, during one season, and the amount of 
products to be exchanged should be doubled during the next, 
the same amount of money might be made to do all the work 
of exchanging. 

But the value of money must rise to twice its original amount. 
If one dollar were formerly exchanged for a bushel of wheat, 
it must now be exchanged for two. The inconvenience that 



What, then, are we to understand by the terms abundance and scarcity 
of money? 



OF EXCHANGE. 2H 

therefore, terms which convey an idea of the relation, 
merely, that exists between the amount of money and 
the amount of products to be exchanged. 

A scarcity or an abundance of money may arise 
from various causes. It has been seen that an in- 
crease of productiveness renders money comparatively 
scarce, and a diminution of productiveness renders it 
comparatively abundant. The scarcity of money in 
the first case is, therefore, an indication of prosperity, 
and the abundance of money, in the second case, is an 
indication of adversity. 

An abundance of money may be occasioned by the 
discovery of a new mine ; and if the cost of mining 
be not too expensive, the abundance of inoney thus 
occasioned will be an advantage to the nation. But 
it can be of use only by being sent abroad in exchange 
for other products, if there were previously sufficient 
nioaey in community for the purposes of exchange. 
But should gold and silver become as abundant as iron, 
they would lose all value as money. 

A scarcity of money may also be occasioned by an 
unproductive consumption of value ; as, if it be em- 
ployed in useless wars : and here it is a sign of adver- 



arises from this relative scarcity of money, results from the dif- 
ficulty of accommodating exchanges to this new state of things. 
But should this state of things become permanent, there would 
be no more difficulty in the way of exchange than formerly. 



Prom what various causes may a scarcity or an abundance of monpy 
arise? 



212 OF EXCHANGE, 

sity. Therefore, the relative abundance or the relative 
scarcity of money, is by no means an unfailing indica- 
tion of the prosperity or adversity of a country. 

Ansibundance may be the sign of prosperity in one 
case, and of adversity in another. The only sure in- 
dication of the economical prosperity of a country, is 
the increase of its productiveness. 

III. Of Banhs-of Deposit and Exchange^ 

We have seen that exchanges are greatly facilitated 
by means of the use of a metallic currency. But were 
an individual to give gold and silver in exchange for 
whatever he purchased, if he were engaged in exten- 
sive business, he would be obliged to keep constantly 
on hand a great amount of the precious metals, in 
order to effect his exchanges. 

This would be so much witlidrawn from his produc- 
tive capital ; and if, by any means, he could diminish 
the amount, and effect his exchanges with a less sura, 
he might, to the whole extent of this contraction, en- 
large his business and increase his sources of wealth. 

If a manufacturer worth fifty thousand dollars were 
obliged to employ ten thousand of it in effecting his 
exchanges, it is evident that he could invest in his 
business only forty thousand. But if, by any means, 



Is either a scarcity or an abundance of money any certain indication of 
either the prosperity or adversity of a country 1 

What is the only sure indication of a country's prosperity ? 

What would be the effect upon the amount of one's productive capital if 
fee were obliged to effect all his exchanges with specie 1 



OF EXCHANGE. 213 

he could effect all his exchanges with one thousand 
dollars, he could then employ in his business forty-nine 
thousand dollars of productive capital. 

Another inconvenience that the manufacturer vi^ould 
encounter, is the time and labor lost in transporting a 
great amount of gold and silver. If this also could be 
avoided, it would be a manifest advantage. And wert 
all exchanges made through the medium of money, 
each payment must be counted by both parties, which 
would occasion a loss of time, and a wear and tear of 
the coin. 

Although this may be deemed a trifling inconveni- 
ence and loss, yet it would be very perceptible in a 
large mercantile house which exchanges from fifty to 
one hundred thousand dollars worth in a day. 

And were each individual to keep constantly on 
hand the whole amount of gold and silver necessary to 
effect his exchanges, he would be exposed to frequent 
robbery, and would be obliged to guard his property 
with increased vigilance. Gold and silver are bulky 
and noisy, and consequently difficult of concealment. 
Since the institution of banks, robberies have been far 
less frequent than formerly. 

The evils above mentioned have been, in a measure, 
remedied by the institution of banks. We shall pro- 
ceed to consider the nature and uses of banks, and the 
benefits which they confer upon community, when 



What are the several other mconveniences that would attend exchangea 
by an exclusive metallic currency ? 
How have these evils been, in a measure, remedied 1 



214 OF EXCHANGE, 

properly conducted, and also the evils and abuses to 
which they are liable. 

The banks first instituted were those of deposit and 
exchange. They are the most simple in their plan 
and in the nature of their operations. Individuals, 
instead of keeping their money on hand, deposit it with 
an individual or with a company for safe keeping. 

Thus, suppose that the merchants in a place, instead 
of keeping their money themselves, lodged it with a 
company in whom they had implicit confidence, and 
that this company established a hanh where they might 
receive the money, and conduct the business relative 
to its deposit and transfer. The bank would now 
open its books, and keep an account with each person 
depositing money, crediting him with whatever he 
deposited, and debiting him to whatever he withdrew. 

Let us now see how the business of exchange might 
be conducted in such a community. If A owed B 
one thousand dollars, he need not withdraw that 
amount of his money from the bank in order to make 
the payment, but he may give B an order for one 
thousand dollars, which B will present to the banker, 
and the one thousand dollars will be transferred from 
the account of A to that of B. If B owe C, he may 
make his payment in the same manner ; C may do 
the same to D ; and D perhaps may owe A, and pay 
him in the same manner. 



What was the first kind of bank instituted 7 

Describe how exchanges would be eflected by the aid of a bank of depoMI 
and exchange. 



0/ EXCHANGE. 215 

And thus, at the end of the day,''exchanges to the 
amount of four thousand dollars may have been effect- 
ed without any transportation or counting of the 
specie. It has been the labor of a few minutes, and 
has all been accomplished by writing a few lines in a 
bank leger. 

There has been a saving of the transportation, count- 
ing, and consequent wear and tear of the coin ; and, 
also, the expenses of guarding and securing the money 
have been materie^^ily lessened. 'i 



» We shall hereafter see how the institution of another kind 
of bank, lessens the amount of the precious metals required to 
effect the exchanges of a community, and by that means renders 
available a greater amount of productive capital. 

But a less amount of money is required to effect exchanges 
between individuals, than may be at first imagined, and banks 
of deposit, in a measure, diminish that amount, although not to 
the same degree as banks of circulation and issue. 

An individual can purchase only by the disposal of some 
values of his own production. All purchases, therefore, are 
merely exch-anges of tlie products of one man for those of 
another, and one man cannot purchase to a greater amount 
than he has, or is supposed to have, products to give in ex- 
change. 

If, then, each individual exchanged directly for the ultimate 
article desired, and there were no need of first obtaining any 
thing intermediate, with which to procure it, there would be no 
need of money in any exchange whatever ; for every man sells 
as much as ho buys, and this would be morely barter. 

But, when one man purchases of another fifty dollars' worth 
of products, in one day, and parts with only twenty-five dollars' 
worth of his own, he requires something more ti make the ex» 
''Aange : he must pay the difference in monej. 



216 OF EXCHANGE. 

And if the exchanges of a community were trans- 
acted by several banks, they would be conducted upon 
the same principles, without the necessity of a transfer 
of the money deposited. 

Suppose that A, B, C, and D, have business with 
each other, which requires a transfer of property ; sup- 
pose that A and D have deposited their money in the 
Jirst bank, B and C in the second. If A is to pay B 
a thousand dollars, he gives him a draft, check, or or- 
der on the first bank, which B deposits in the second 

But, if the second individual will not receive the products of 
the first, the former will need fifty dollars to make the exchange. 
Thus, an individual may be obliged to make all his purchases 
with money, which will require a large amount of the precious 
metals, although, at the end of the year, his purchases may not 
exceed his sales. 

He has, finally, exchanged product for product, although he 
has been obliged to use an instrument, money, to accomplish the 
work. Now, a bank of deposit and exchange may, in a great 
measure, supply the place of this instrument, money, and at a 
far cheaper rate. The individual may deposit in the bank a 
Email sum of money, equal to the excess, if any, of his pur- 
chases above his sales during a day, a week, or a longer period. 

If, now, the bank transact the business of exchange between 
the parties, and the accounts be settled at the close of each 
week, an amount of money equal to the diiference of the ex- 
changes between the parties would meet every emergency. Each 
person might, therefore, employ a greater portion of his capital 
in active business, and the active capital of community would, 
therefore, be greatly increased. 



Describe the manner in which exchanges would be effected between seve- 
ral banks of this kind. 



OF EXCHANGE. 217 

bank. C pays D in a draft on the second bank, which 
D deposits in the first bank. 

Each bank is thus to receive a thousand dollars, and 
to pay out a thousand dollars. The drafts cancel each 
other, and thus the transaction is completed. It would 
have Deen useless to transport the money back and forth 
in this c^se, yet it must have been done had there 
been no banks or similar institutions to transact the 
business. 

If the exchanges were between distant places, as 
between New-York and Liverpool, the saving of time 
and labor by this method of exchange would be still 
greater. Suppose tliat A in Liverpool sells to B in 
New-York ten thousand dollars' worth of broadcloths, 
and that C in New-York sells to D in Liverpool ten 
thousand dollars' worth of cotton ; A is entitled to de- 
mand ten thousand dollars from B, and C to demand 
the same amount from D« A now writes an order to 
B, ordering him to pay ten thousand dollars to the 
bearer, or to some person mentioned. D gives A ten 
thousand dollars for this order, and transmits it to C, 
who receives it in payment of the debt due him from 
D ; C then carries this order to B, or to his banker. 



But banks of discount and loan, and of circulation and issue, 
more fully and more conveniently accomplish the same object, 
and have now almost entirely superseded the use of banks of de- 
posit and exchange. 



Describe the manner in which exchanges are usually effected betwees ( 
£ant places, such as New- York and LiverpooL 

19 



218 OF EXCHAP^GK. 

and receives for it ten thousand dollars. Thus all the 
payments have been made without the transfer of anj 
specie. Banks usually conduct this business. 

In the case supposed above, D might not have known 
to whom to apply for the " order ;" but if all the mer- 
©hants in Liverpool who had demands on the merchants 
in New-York, should deposit their orders or v/ritten 
demands with a certain bank, the purchasers would 
know where to apply, and the bank might conduct th© 
business between the sellers and purchasers. 

But we have supposed that the exchanges between 
the tv/o places were equaL Now, suppose that Nev/= 
York should purchase of Liverpool products to the 
amount of ten millions of dollars, and should sell to 
her products to the amount ©f only five millions in re- 
turn. In some way New-York must pay the difference^, 
If she send specie in exchange, she must have obtained 
the specie from some other quarter by an exchange of 
her products, for thei?e is no other way by which she 
could have oMa-ined it. 

Or New -York might perhaps send wheat to Cuba^ 
and obtain in exchange sugar or cotton, which might 
be transmitted to Liverpool, sold, and the proceeds de- 
posited in a bank in Liverpool. Then the merchant,. 
who ov/ed a debt in Liverpool, v/ould send to his credi- 
tor a draft or order upon the bank ; the -money, pre» 
viously deposited there by the sale^ of the sugar and 



Of what assistance are banks in this transaction ? 

Now, suppose that the exchangea- Setween the two places were uneq(ia3^. 
how will tliedifferehce be paid?' 



OF EXCHANGE. 219 

cotton, would be given in exchange for it, and thus the 
debt be cancelled. 

These " orders" for the payment of money between 
different countries are called bills of exchange, or fo- 
reign bills of exchange, in distinction from inland bills 
of exchange. They greatly facilitate commerce or 
the exchanges between different nations, as we shall 
see by inquiring more particularly into their nature 
and origin, 

A bill of exchange is an open letter of request, or an 
order from one person to another, desiring the latter to 
pay, on account of the former, a sum of money there- 
in mentioned to a third person. 

Thus, if A in New- York have owing him from B in 
Liverpool ten thousand dollars, and C in New-York be 
going to Liverpool to purchase goods, A may draw a 
bill of exchange on B ; that is, request him to pay ten 
thousand dollars to C. A thus assigns the debt due 
him to C ; C pays A for this bill, and carries his 
money over to Liverpool in paper credit, without the 
risk of robbery or loss. For although this bill should 
fall into the hands of another person, it would not be 
paid without the authority of C written upon it for 
that purpose. 

The person who draws the bill is termed the drawer ; 
he to whom it is addressed, is, before acceptance, called 
the drawee, and afterwards the acceptor. The person 



What is a bill of exchange 1 

How are payments of money made by them ? 

Wlio is the drawer of a bill of exchange 1 The drawee "? The acceptor % 



^v. 



220 OF EXCHANGE, 

« 

in whose favor it is drawn is termed the pa,7/ee, or the 
one to whom the debt is made payable ; and when ho 
endorses the bill, or transfers his right in it to another, 
he is called the endorser, and the person to whom he 
transfers it is called the endorsee or holder. 

Bills of exchange were probably first invented among 
merchants for the more easy and safe remittance of 
money from one to the other in different countries ; 
but since the great increase of commerce, they have 
become equivalent to specie, and thereby greatly faci- 
litate commercial transactions. 

Thus, a merchant in New- York may have present 
need of ten thousand dollars wherewith to purchase 
goods in Liverpool, but may not have ready money to 
that amount, but a Liverpool merchant may owe 
him ten thousand dollars, payable in six months from 
this time. 

The Nev/-York merchant now drav/s a- bill of ex- 
change on his debtor, payable at six months after date, 
and gives this in security for the goods which he pur» 
chases ; and the one of whom he obtains the goods 
may, in his turn, obtain goods on the credit of this 
bill of exchange ; and thus the bill may have the same 
effect in different hands, and be transmitted by en- 
dojsement or otherwise. It thus answers the purpose 
of money. But the credit of the person on whom the 



Who is the payee ? The endorser ? The endorsee ? 
By whom and for what purpose were bills of exchange probably first in- 
vented 1 
In what manner are they made to answer the purposes of money ? 



OF EXCHANGE. 221 

bill is drawn must be good, or the bill will not be thus 
received. 

When one country has purchased of another a great- 
er amount of products than has been sent in return, 
there arises a demand for bills of exchange wherewith 
to pay the debt. . If the New-York merchants have im- 
ported cloths from Liverpool to the amount of two mil- 
lions of dollars, and have sent in return products to the 
amount of only one million, there will arise a demand 
for bills of exchange upon Liverpool. 

Perhaps Liverpool may be indebted to Paris, and 
Paris to New-York. In this case New-York will re- 
ceive her pay from Paris in bills of exchange upon 
Liverpool, and send these bills to Liverpool in payment 
of the debt due there. Thus, New-York pays Paris, 
and Paris pays Liverpool. 

This is an accommodation to all parties, who make 
their paj^ments without the transmission of any specie 
whatever, which is a saving of the cost and risk incur- 
red by transportation. It is credit that is transferred, 
and not money. 

Thus, bills of exchange become articles of merchan- 
disc as much as any thing else, and are negotiated to 
a considerable degree, by banking institutions, and by 
men who devote themselves to the buying and seUing 
of exchange. 



Under what circumstances would there naturally arise a demand for bills 
of exchange upon Liverpool or any other place 1 
3y whom are the bills of exchange negotiated ? 

19* 



222 OF EXGHANGB. 



SECTION III. 



OF EXCHANGE BY MEANS OF A PAPER CUR. 
RENCY. 

I. Banks of Discount or Loan, and of Circulation or 
Issue* 

There is another kind of bank founded on principles 
materially different from banks of deposit and exchange* 
Banks of deposit are now, indeed, nearly obsolete, and 
are suited only to the early stages of commercial pros- 
perity, and are liable to many inconveniences. 

The common process of banking offers all the advan- 
tages possessed by banks of deposit and exchange, ex- 
cept, perhaps, that of security ; the banks now estab- 
lished possess a greater degree of utility, are more 
convenient, and far less expensive. 

Many objections, however, have been urged against 
them, and some very justly, considering the manner in 
which they have often been conducted. 

We shall examine the principles upon which they 
are instituted, and the manner in which they are de- 
signed to operate, and leave the reader to judge how far 
the defects complained of are inherent in their nature, 
and how far they arise from a fraudulent and remedia- 
ble abuse of their privileges. 



What other kind of bank remains fobs considered ? 
What is said of the objections urged against them, and the manner in whicBi 
Ihe subject will be treated 1 



OF EXCHANGE, 22& 

Banks in this country are chartered incorporations. 
Which are created by the legislatures of the States, un- 
der such restrictions and regulations as the legislature 
may impose. Persons wishing to be incorporated as a 
banking company, present a petition to the legislature 
of the State in which they reside, praying for such 
privilege. 

If the. petition be granted, they are thus incorporated, 
and the amount of capital designed to be employed in 
the banking transactions is fixed in the act of incor- 
poi-ation. 

This sum is divided into shares, or equal portions, of 
such amount as may be supposed best suited to the 
wants of the community ; and at a gj-ven time and 
place, publicly notifisd, books for subscription are 
«)pened, and every one is allowed to subscribe for and 
purchase as many shares as he wishes, until the shares 
are all disposed of. 

The subscribers or purchasers are called siockhold- 
ei's, and the shares are called stock. 

The stockholders then meet, and choose from their 
number certain persons' to conduct the operations of 
the bank, who are called directors ; and the whole of 
these together are called the hoard of directors. 

The directors then choose from their number a 
president, and a person not of their number, as cashier. 

The board of directors meet at stated times to direct 



What are banks in this country, and how created 1 
What is their manner of operation ? 



224 OF EXCHANGE, 

the general affairs of the bank ; but the active duties 
of the bank devolve upon the president and cashier. 

When the bank is thus organized, those who have 
subscribed for stock are required to pay to the cashier 
the sums for which they have subscribed. The bank 
is then ready to commence operations. 

The bank loans its own bills, redeemable in specie, to 
those who wish to borrow, and receives the notes of 
individuals, of equal amount, in return^ and charges 
them interest on the amount loaned, which is paid in 
advance. 

The payment of the bills loaned is usually guaran- 
tied by some other person or persons, called endorsers. 
If those who borrow money of the banks fail to pay 
(le debt is collected of the endorsers. The ordinary 
period of loan is thirty, sixty, or ninety days, at the 
close of which time the notes may be required to be 
paid 5 and the bank may thus, if it chooses, close its 
business v/ithin sixty days, and remain as it was when 
it commenced, with the exception of the interest ob- 
tained by its loans. 

Let us now see what guarantee the bank possesses 
for the redemption of its bills. 

Suppose the capital of the bank to be one hundred 
thousand dollars, and this amount to be actually paid, 
in specie, by the stockholders. If now the bank issue 
bills merely to the amount of its capital, it will have 
more than a double guarantee for their redemption. 

What guarantee does the bank possess for the redemption of its bills, li sS 
loan merely to the amount of its capita! 1 



OF EXCHANGE* 225 

For it win have specie equal to the amount of bills 
loaned, and will also hold the notes or securities of in- 
dividuals to the same amount. 

This will now be a double security for the redemp- 
tion of its bills. But, in addition to this, it has also 
the interest of the sum loaned, which has been paid in 
advance. It has, therefore, more than a double secu- 
rity for the redemption of its bills. 

It is therefore evident, that the bank may issue bills 
to a greater amount than it has specie, and still be able 
to redeem all its bills, if its securities are good. 

Therefore, in the chartei^ which they receive from 
the legislature, they are allowed to issue bills to a 
greater amount than they have specie, and the extent 
of this amount is fixed in the act of their incorporation. 
Banks are usually allowed to issue bills to twice or three 
times the amount of their capital. 

But the bank pledges itself to redeem its bills in spe- 
cie, on demand, and in failure of so doing, forfeits its 
charter, — in other words, the bank breaks, or becomes 
insolvent. 

Now, there is a possibility that the bank may be 
broken while it is perfectly solvent, — that is, while its 
available dues exceed its liabilities. For example : the 
capital of a certain bank is one hundred thousand dol- 
lars, and it has loaned bills to the amount of three hun- 
dred thousand dollars, for the period of sixty days. 



To wJiat extent, tben, may banks be allowed to issue bills 1 

How does a bank pledge itself to redeem its bills 1 

How may a bank be broken while it is perfectly solvent 1 



226 OF EXCHANGE. 

For the three hundred thousand dollars of iis bills in 
circulation the bank has good security to that amount, 
together with its capital of one hundred thousand dol- 
lars ; but the securities are not available until the ex- 
piration of sixty days. If, at the expiration of that 
period, the borrowers of the bank's money fail to pay 
their debts then due, the bank may take the property 
secured to it, to the full amount of such debts. 

But if the whole amount of these bills should be re- 
turned to the bank within thirty days after their issue, 
and specie shouM be demanded from them, the bank 
would not have wherewith to meet the demand. And 
the bank failing to fulfil its promises to redeem all its 
bills in specie, must therefore break, although at the 
expiration of the sixty days it might still be able to re- 
deem all its bills, if not in specie, at least in valuable 
property to that amount. 

The cause which so lately (in 1837) obliged the 
banks in this country to suspend specie payments, was 
the sudden presentation of their bills, and the demand 
for specie, while no time was allowed them to collect 
their debts, and redeem their bill.« '^ith the securitiaa 
which they held. 

" But in ordinary times there is no danger that the 
bills will be returned for specie so suddenly/. And if 
the loans of a well-conducted bank do not exceed sixty 
days, it can within that time compel the payment of 



Why were the banks in this country obliged to suspend specie payments in 
1837? 

How many a bank usually place itself on a safe footing within a short pe- 
riod? 



OF EXCHANGE. 22? 

its debts, call in its loans, and leave no demands against 
it, while its capital remains untouched. For those who 
borrow the bills of the Gank, must repay them at the 
expiration of the time for which they were loaned — 
either in specie, in the bills of the same bank, or in the 
bills of other specie-paying banks. 

In the former two cases, the bank calls in its own 
bills, or specie suiicient to meet them ; and in the lat- 
ter case, it may exchange other bills for its own, or for 
the specie of the banks that issued them. And thus 
none, or only a few, of its bills will be left in circula- 
tion, and the demands that can be made for specie will 
be quite trifling. 

Thus, any well-conducted bank may, in a short pe- 
riod, wind up its concerns, redeem its promises to pay 
its bills in specie, and place itself upon a perfectly safe 
footing. And this, also, although it has loaned bills to 
three times the amount of its capital. 

The same might have been accomplished by the 
banks generally throughout the United States in 1837, 
if they had been allowed the short period of sixty days ; 
at the expiration of which time they might have called 
in all their bills. 

But the remedy would have been far wmse than the 
evils incurred by a temporary suspension of specie 
payments. To have removed such an amount of tha 
circulating medium of the country, would have been a 
blow as fatal to commerce, as the destruction of his 



What would have been the eflect if the banks, in 1837, had withdrawn 
tkeiT bills from circulation, in order to render themselves secure ? 



228 OF EXCHANGE. 

implements of husbandry would have been injurious to 
the farmer.^ 

We see, then, that well-regufated banks may safely, 
in ordinary times, issue bills to a greater amount than 
they have capital ; and the extent of their capital need 
be no more than sufficient to redeem every bill as soon 
as presented, and, besides, to guaranty the holders of 
its bills against any injury that the bank might suffer 
• from a failure of its securities. 

II. Of the Sources of the Profits of Banks. 

1st. From deposits. Individuals frequently deposit 
money with a bank for safe keeping. The bank then 
uses this money as its own, upon which it receives 
considerable profits. Thus, if a bank have fifty thou= 
sand dollars of deposits, it may consider this as a por 
tion of its capital, and issue bills upon it to perhaps 
twice or thrice its amount, 

» But a bank never issues its bills gratuitously ; and even if 
it have no fun,ds of its own, these bills imply, in the coffers of 
the bank, a value of like amount, either in the form of specie, 
or of valuable securities bearing interest. So long, therefore, aa 
the business of the bank is v/ell administered, supposing a total 
failure of confidence to bring all its notes upon it at once for pay- 
ment, the worst that can happen to the holders, is to he paid with 
the same bills or securities whereon the bank issued its notes. 
And if the bank have a capital of its own, there is so much 
additional security. 

What should be the extent of capital possessed by banks generally 1 
What are the several sources of the profits of banks 1 



or EXCHANGE, 22& 

2(3. By negotiating and exchanging drafts and bills 
of exchange, &c. Thus, A, at Buffalo, wishing to 
send a thousand dollars to B, in Nev/-York, gives one 
thousand dollars to a Buffalo bank for its draft to that 
amount, which is a request to some bank in New-York 
to pay on demand one thousand dollars to B. This 
draft is then sent to B, who receives the money by 
presenting the draft at the bank. 

And if a person in New-York wishes to send money 
to Buffalo, the business is transacted in the same 
manner. 

And it is evident, that if the exchange of drafts be- 
tween the two places were equal, there need be no 
transmission of money. This is a safe and convenient 
way of making payments in distant places ; and the 
banks charge a certain per centage for transacting 
this business, from which a portion of their profits is 
derived. 

8d. The chief source from which a bank derives its 
revenue, is its regular loans. The bank receives in- 
terest on all the notes it issues, and the amount of 
these notes may be twice or thrice that of the capital 
of the bank. 

There would, however, be little or nothing gained 
by banking, were banks allowed to issue notes only to 
the amount of their actual capital ; for although they 
received interest on their notes, interest to the same 
amount would lay dormant in the specie withdrawn 
from circulation. 

20 



230 • OF EXCHANGE, 

III. Of the utility of Banks. 

In treating of the utility of banks, as a distinct sub- 
ject of consideration, there can be little more than a 
repetition of the. principles which have already been 
advanced. 

It has been seen, that in a state of barter exchanges 
are difficult, and few in number. The use of money 
as a labor-saving instrument, increases the number 
and convenience of exchanges. Banks are more com- 
plicated instruments, or labor-saving machines, design- 
ed to accomplish the same object. 

A proper estimate of the utility of such institutions* 
when well conducted, can be derived only from an in- 
timate acquaintance with the varieties and magnitude 
of commercial transactions ; from a knowledge of the 
peculiar adaptation of the machine to the purposes for 
which it is designed ; and, finally, the application, to 
this knowledge, of established principles in political 
economy. 

But the principles upon which commercial transac- 
tions are conducted, are few and simple, and easy of 
comprehension, and may be gathered mostly from the 
preceding parts of this work which treat of Production 
and Exchanges. 

The nature of banks, and the principles upon which 



What is said of the utility of banks 1 

For what are banks designed 1 

How only can a proper knowledge of their utility be obtained 1 

What is said of tlie principles of commercial transactions 1 



OS* EXCHANGE. 231 

they are conducted, have been examined as far as the 
limited extent of this work would permit ; and perhaps 
the application of principles already established, would 
remove any necessity of considering this subject fur- 
ther in detail. But, to render the subject somewhat 
plainer, we will briefly advert to a few of those prin- 
ciples which may be deduced from the previous portion 
of the chapter on exchanges. 

In reference to the utility of banks as institutions 
of deposit, it is sufficient to advert to their saving of 
the labor of transportation, of counting, and of vigil- 
ance, which have already been examined under the 
article, " Banks of Deposit and Exchange." Although 
banks of deposit are now nearly obsolete, yet all their 
advantages are retained in the banks of the present 
day. 

The utility of banks as institutions of discount^ and 

» Discounting a note or bill, is merely the advance of its pre- 
sent value before it becomes due. Thus, if A holds a note of 
one hundred dollars, due twelve months hence, and wishes the 
money at the present time, B, perhaps, will discount the note 
for. him. 

A transfers the note to B, in consideration that B will now 
advance him the present value of the note. That is, B gives A 
in exchange for the note, not one hundred dollars, but such a 
sum as, put at interest at the given rate, would, at the expira- 
tion of a year, amount to one hundred dollars. 

Thus, banks discount commercial paper, bills of exchange, &c 



What of the utility of banks as institutions of deposit and exchange! 

From what is the utility of banks of discount derived ? 

{W/ liat is meant by disco'J nting a note '^) ' ■ ^ 



232 OF EXCHANGE, 

loaii, or of circulation and issue, is derived, not from 
their adding any thing directly to the capital of a 
country, but from their rendering the existing capital 
much more 'productive. 

This object is accomplished in several ways. Banks 
collect together and render productive a large amount 
of capital that would otherwise be scattered and use- 
less. Small sums in the hands of laborers, widows, 
minors, and aged persons, which would otherwise be 
often thrown away in folly and dissipation, are now 
safely deposited in banks, which allow the depositor a 
certain rate of interest, and still make a profit to them- 
selves. Thus, a larger amount of capital is engaged 
in active production, by which not only the owners 
of capital thus rendered useful, but also the banks and 
the country at large are benefited. 

Banks also render the capital of a country far more 
productive by the facilities which they afford for the 
extension of credit. For example, a merchant in one 
of the western States wishes to purchase a new stock 
of goods to the value of ten thousand dollars, but can- 

If a bank discount a bill of exchange, it gives its own money in 
return for the bill — subtracting therefrom the discount. The 
bank then collects the full amount of tlie bill-, when it becomes 
due. 

Where a bank discounts a note or bill of exchange, it is in 
effect loaning its own money, and receiving in security the note 
or bill payable on a future day. 



In what different ways do banks render the capital of a country more pra 
ductive T 
How do banks afford facilities for the extension of credit 7 



OF EXCHANGE. 233 

not command that amount of money at the present 
time. 

But he perhaps owns twenty thousand dollars of 
valuable property. He now goes to a neighboring 
bank, and, by mortgaging his property as security, 
obtains the loan of ten thousand dollars, with which 
he goes to New- York or New-Orleans and makes his 
purchases, and after the sale of his goods is enabled to 
return tiie bank what he borrowed, and retain a profit 
to himself. 

And if the merchant be a poor man, but be honesty 

skilful, and industrious, he may probably borrow money 
of the bank on the security of other individuals. Banks 
afford the same facilities not only to merchants, but 
to all business men who are able to give security for 
the sums borrowed. For the use of this money, the 
borrowers pay the banks a cer4:ain amount of interest. 
And it is much cheaper to the borrower— ^to the mer- 
chant, for instance — to obtain credit from the banks 
than from the importer of whom he obtains his goods. 
For the importer, fearful that he may lose, either by 
the want of skill or fidelity in his debtor, charges him 
considerably more for his goods than he would charge 
if he sold them for cash. He has both a cash and a 
credit price for his goods. 

But if the merchant could pay cash for his goods, 
he could not only obtain them cheaper, but the im- 
porter could afford them cheaper ; for if the latter can 
receive cash for his goods immediately on their sale. 

Why is it the cheapest to a borrower to obtain credit from banks 1 

20* 



234 OF EXCHANGE. 

he also is enabled to purchase his goods cheaper, for 
he thus obtains them in a foreign market at a cash in- 
stead of a credit price. 

And thus, by the extension of credit which the banks 
afford, there is a benefit to the whole community. 
But it may be said, if there were no banks, individuals 
would loan money in the same manner as banks now do. 

In the first place, they would have much less to loan, 
for they could loan gold and silver only, as the paper 
of private, unknown individuals, would not be received 
at a distance from home. They could never loan 
credit so extensively as banks. 

And again, after the trouble of finding a capitalist, 
he might be timid and suspicious ; unacquainted with 
the business and character of the borrower, his risk of 
loss would often be great; the rate of interest would 
consequently be high ; and there would be, on the 
whole, but little disposition on the part of the capital- 
ist to part with the immediate control of his means. 

But the many inconveniences that would result from 
this system of loaning, are too obvious to need enume- 
ration. 

But it has been seen that banks may issue notes to 
a greater amount than they have specie, and yet be 
safe to the community. These notes answer the same 
purposes as specie in exchanging commodities ; con- 



How does this credit system benefit the whole community 1 

What inconveniences would arise were private individuals the only money 

lenders 1 
While bank notes answer the same purpose of exchange as species, how 

io baoks increase the producSve capital of a country 1 



OF EXCHANGE. 235 

eequently the result is the employment of a cheaper 
instrument for facilitating exchanges. 

But as only a certain amount of value is required 
to effect the exchanges of a community, if more mo- 
ney be put in circulation its value will diminish, and 
vice versa ; and the paper money that is issued being 
redeemable in silver, its value is still equal to the silver 
money. 

But if there be an increased amount of this money, 
its vahie will be lower here than abroad, and a dollar 
will obtain more abroad than it will purchase at home. 
But as the specie only is of any value abroad, specie 
alone will be exported. 

Suppose that half the specie could be exported with- 
out impairing the currency at home, this export, then, 
would be, to its full amount, so much gain to the pro- 
ductive capital of the countiy, for it would procure in 
exchange an equal amount of other capital. 

The advantages, therefore, of having a portion of 
the currency of the country in paper money, redeema- 
ble in specie, are, first, its greater convenience in ex- 
change ; and, secondly, it enables us to use a cheaper 
instrument instead of a dearer, and to employ the 
amount of the difference between the cost of paper 
money and specie in the various operations of human 
industry. 



What, then, are the advantages in having a portion of the currency in pa 
r-«r money, redeemable in specie 1 



236 OF EXCHANGE. 



IV. Qf the disadvantages of Banks, 

Banks are liable to forgery, fraud, and fluctuation, 

1st. Bank paper is liable to forgery, and those who 
have counterfeit notes imposed upon them must bear 
the loss. The security from signatures is small. The 
greatest security is in the excellence of the engraving, 
for an ordinary artist can very accurately counterfeit 
a bad engraving, but only the best artists can accu- 
rately counterfeit a good one. Banks should employ 
the best artists in the execution of their biiis, for they 
are probably under the fewest temptations to engage 
in counterfeiting. It is true that coin may be coun- 
terfeited, but the process is much more difficult and ex- 
pensive, and false coin is easily detected. 

2d. The transactions of banks may be fraudulently 
conducted by their officers, and thus expose the com- 
munity to a loss, if they have no other security tlian 
the integrity of bank directors. But the system of 
banking may be so regulated by wise legislation, that 
there will be little danger to the community from this 
source. 

3d. There is, however, one disadvantage to which 



What are the disadvantages of banks ? 

What is the danger from forgery, and in what manner best avoided 1 
To what danger is community exposed from fraudulent transactions o- 
hanks 1 
What is the principai disadvantage to which paper money is exposed ? 



OF EXCHANGE. 237 

paper money is greatly exposed : it is liable to sudden 
and great fluctuations in value. 

If a certain number of dollars be necessary to ac- 
complish the exchanges of a community, and twice 
this number be introduced, the price of money will fall 
one half; that is, if five dollars were given for a bar- 
rel of flour before, ten dollars will be given now. 

The same value will be given in both cases, but not 
the same nominal amount. And if half the quantity 
were removed, the reverse vfould be the case. 

Therefore, if banks suddenly increase their loans, 
that is, issue a great amount of paper money, while 
there are no more exchanges to be made than before, 
the price of money v/ill fall ; that is, a dollar will not 
obtain as great an amount of other commodities as it 
could obtain previous to this excessive issue of notes. 

Suppose that before this excessive issue of bills a 
laborer could have obtained a bushel of wheat for a 
day's work, and that he had labored twenty days for a 
farmer, and received for his services twenty dollars, 
expecting to obtain for his money within a few weeks 
twenty bushels of wheat. But in the mean time money 
becomes much more plenty, on account of the vast 
amount of paper money put in circulation by the loans 
of the banks — the price of money consequently falls, 
and the laborer' can now- receive perhaps only ten or 



How are fluctuations in the value of money occasioned 1 
What is the effect of a sudden increase of bank paper whiie exchanges 
►wmain tlie same ? 
How may the wages of labor be effected by this increase 1 



238 OF EXCHANGE. 

fifteen bushels of wheat for his twenty dollars. The 
difference is a total loss to the laborer.^ 

Various causes may occasion this excessive increase 
of money, and consequent fluctuation of value. A 
season of unusual productiveness may occasion it. 



» But, it may be remarked, — banks are not very liable to 
make extensive loans, unless the wants of community require it. 
If there be an increase of productiveness throughout the coun^ 
try, and consequently more commodities to be exchanged, then 
it is an advantage to have the amount of money increased pro- 
portionally to the greater amount of exchanges required to be 
made. But, if money be increased beyond this amount, and if 
the amount at one time necessary still remain the same, while 
the number of exchanges has diminished, it is then attended 
with evil to the community. 

But, while the number and amount of exchanges are increas- 
ing, there will naturally be a demand for more money, and the 
banks will keep the supply equal to the demand ; and, Avhen 
exchanges diminish, the loans of the banks will naturally be 
contracted. For they cannot issue bills unless there is a demand 
for them. 

But, at times the spirit of speculation rages throughout com- 
munity, and the nominal value of property rises immeasureably 
high. The same amount of money is i-equired to exchange 
nominal as real value. There is then an unnatural demand for 
money, and the banks issue as before, until, at length, the eyes 
of men are opened — the bubble speculation bursts — property 
falls to its natural level — and there is a vast amount of useless 
money afloat in community. 

The excessive issue of money, therefore^ beyond the real 
wants, of community, is the evil to be avoided. This evil may 



How may fluctuations in the value of paper money be occasioned by tlia 
fijccurrence of a season of unusual productiveness 1 



OF EXCHANGE, 239 

By an increase of productiveness products are ren- 
dered cheaper. Speculators will then buy, in the hope 
of making large profits by their sales — there is a call 
upon the banks for money, and, as it is to their inter- 
est so to do, they will loan to the utmost extent of their 
power. 

An unusual excitement is thus given to business — • 
wild speculations are engaged in: — and the consequence 
is, a great excess of money is issued, far beyond the 
real wants of community. 

But, as money is now cheaper at home than abroad, 
there will soon arise a demand for specie to be export- 
ed — bank bills are now bought ^p by speculators, and 
specie demanded for them — confidence in the banks 
begins to fail, and they are obliged, for their own se- 
curity, hastily to call in their loans. 

There now arises a scarcity of money, and a pres- 
sure is felt in all commercial transactions. But, by 
this scarcity of money, products again become com- 
paratively cheap — there is again a disposition to buy, 
and to engage in speculations — banks again increase 
their loans— and the same extremes, unusual commer- 
cial activity and violent depression, again succeed 
each other. 



in a great measure be remedied, by limiting' the loans of tlio 
banks tq a certain amount above their capital actually paid in. 

But the banks and bank directors are generally censured for 
all these evils, while the speculators, the real originators of 
them, turn from themselves the odium, by being the first and 
loudest in their denunciations of the banking system. 



240 OF EXCIIAKGK. 

But gold and silver money cannot be thus suddenly 
and extensively increased in amount, for they have a na- 
tural price, different from that of bank bills, depending 
on the cost of production. Thus far a specie curren- 
cy Avould be an advantage, for it would increase and 
diminish in a more exact proportion to the real wants 
of community. 

Banks, also, by conspiring together, may at one 
time loan very freely, and at another simultaneously 
contract their issues, and enforce the payment of their 
loans— thus rendering money scarce, and unable to be 
obtained. 

In this manner, thej may render great numbers of 
the population bankrupt. For those who have pay. 
ments to make, being unable to obtain money will often 
be obliged to dispose of their property at a great sa- 
crifice. 

These, however, are evils which arise mostly from 
an abuse of banking privileges. Wise legislation may 
in a great measure remedy them, but even then there 
are some dangers to which every banking system is ne- 
cessarily liable. 

The effect of banks upon individual and national 
wealth, is described by Smith in a quaint and inge- 
nious metaphor :- — 

The capital of a nation he likens to an extensive 



Why is not gold and silver money liable to these sudden fluctuations 1 
What evils may banks inflict upon community, by conspiring together for 

that purpose 1 
Do these evils, however, arise from the very nature of banks, or from an 

abuse of tlieir privileges 1 



OP EXCHANGE. 241 

tract of country, in which the cultivated districts re- 
present the productive capital, and the high roads the 
agent of circulation ; that is to say, the money, that 
serves as the medium to distribute the produce amon^ 
the several branches of society. 

He then supposes a machine to be invented for trans- 
porting the produce of the land through the air ; that 
machine would be the exact parallel of credit-paper. 
Thenceforward the high roads might be devoted to 
cultivation. 

The commerce and industry of the country, how- 
ever, he continues, though they may be somewhat aug- 
mented, cannot be altogether so secure, when they are 
thus, as it were, suspended upon the Daedalian wings 
of paper money, as when they travel about upon the 
solid ground of gold and silver. 

In this country, public opinion appears to have de- 
cided that the advantages afforded by banks are alto- 
gether paramount to the evils which they inflict upon 
community. But it is universally conceded that the 
banking systems in the different States are generally 
very defective. 

Many theories have been advanced for the better 
regulation of the currency, but it is difficult to induce 
80 many separate sovereignties as the States to unite in 
any one system. 



How is the effect of banks upon individual and national wealth described 
by Smith ? 
What is said of the present banking systems in the different States 1 

21 



24:^ OF EXCHANGE. 

It is thought by many that the Safety Fund System 
adopted in New- York, combines the most salutary pro- 
visions for the security of banks, and for the evils here- 
tofore so frequently inflicted by their failures, and by 
the dishonesty of their directors. 

An exposition of this system will be given in the ac- 
companying note.^ 



a By the late Revised Statutes of the State of New-York, it is 
provided that each bank in the Stale hereafter created, or whose 
charter shall be renewed, shall yearly pay to the treasurer of the 
State a sum equal to one half of one per cent, on the capital 
stock of the bank, until three per cent, on the capital stock shall 
be paid in, which shall remain a perpetual fund, to be denomi- 
nated a Bank Fund. 

This bank fund is to be appropriated to the payment of such 
debts (exclusive of the capital stock of such banks as shall be- 
come insolvent) as shall remain unpaid after the property and 
effects of the bank have been applied to that purpose. This fund 
is invested by the comptroller in public stocks, or in loans, issued 
upon the credit of the State, 

The income arising from this fund, if not needed to pay the 
debts of insolvent banks, is to b« paid to the banks, in proportion 
to their contributions ; but when the fund is reduced, by the 
payment of the debts of insolvent corporations, the banks are 
again to commence paying into the fund as formerly, until the 
fund be reimbursed. And if the fund, at any time, should not 
be sufficient to pay the debts of insolvent corporations, then the 
first moneys paid into the fund are applied to the liquidation of 
the same. 

Bank commissioners also are appointed, whose duty it is to 



Of the New- York Safety Fund System'? {Explain it.) 



OF EXCHANGE. 243 

visit and thoroughly inspect the affairs of each bank at least 
once in four months, and to report to the legislature. 

The amount of notes or bills put in circulation, as money, by 
any bank, is limited by law to twice its capital stock then paid 
in, and actually possessed; and the amount of its loans and dis- 
counts at any one time, is limited to twice and a half its capital 
stock then paid in, and possessed. 

In cases of fraudulent insolvency by the directors of any in- 
corporation, the directors thus guilty are made responsible in 
their private capacities for the debts of the institution. 

Also, every moneyed corporation hereafter to be created in the 
State, is to have all its capital paid in before it can make any 
loans or discounts, and the payment of the capital is to be proved 
on oath, to the satisfaction of the bank commissioners. 

The stock of a bank is usually paid by instalments ; that is, 
only a certain portion of each share is paid when the bank com- 
mences operations, and the remainder is paid in such amounts 
and at such times as are designated by the act of incorporation. 
But, in New- York, a bank cannot commence business until the 
president and cashier have made and subscribed an affidavit, stat- 
ing that the whole stock of the bank has actually been paid. 

Thus, by the provisions which regulate the banks in New- 
York, under the safety fund system, there is little opportunity 
for fraud, and the holders of bank notes can suffer no permanent 
loss by the failure of banks. It is thought that this system will 
effectually remedy the most prominent evils to which banks have 
heretofore been liable. 

The subject of banking at the present time is one of the most 
exciting interest. The shock that has lately been felt in the 
commercial world, and in all monetary transactions, — the gene- 
ral depression of credit, — the failures of thousands, — and the 
suspension of specie payments by the banks, have directed public 
opinion to inquiry into the causes of this wide-spread calamity, 
and to the suggestion of countless remedies for the evil. 

The intimate connection of this subject with Political Econo* 
my, will excuse us in adverting for a moment to matters of po. 



244 OF EXCHANGE. 

litial controversy ; and in treating of such a subject, it is hardly 
possible to avoid them. 

Passing by the causes which have led to these calamities, it is 
not surprising, where all are interested in the establishment of a 
safe, convenient, and permanent currency, that many projects 
should be advanced for the accomplishment of such an object, 
both by the lionest and by the interestedly selfish, and that a vio- 
lent prejudice should arise against the currency system under 
which these calamities happened. 

But it is surprising to find so many who are so unacquainted 
with some of the first principles in political economy, — viz., the 
advantages derived by a division of labor in effecting exchanges, 
as well as in increasing production, — ^that they seek the destruc- 
lion of all banking institutions whatever. 

I am willing to believe that those who advocate such a mea- 
sure, are not actuated by pecuniary motives ; for I can conceive 
of no possible good that the adoption of such a measure could 
confer upon any class of society, and it is not difficult to predict 
the evils that would fall upon all. 

Banks must be established under such regulations as govern- 
ment may impose upon them, or their business must be done by 
individuals. But individuals being frequently unknown to the 
public, have certainly greater opportunities for the commission 
of fraud than public incorporated bodies. 

Collusion, for the purpose of raising the rate of interest, is as 
liable to occur between individual money-lenders as between 
banks ; and doubtless more so, as it is more difficult of detection. 

The wisdom of one man will probably not succeed any belter, 
at least, in managing banking transactions, than the combined 
wisdom of a dozen individuals. All the evils to which banks 
are liable, would still exist to as great a degree, at least, as at 
present, if individuals should undertake to do the business now 
done by banks. 

But it is also said that we can do without banking institutions 
and banking transactions, — that we may have an exclusive gold 



OP EXCHANGE. 245 

and silver currency, and that every man may make and receive 
his payments in coin. 

This would merely be carrying us back two or three centu- 
ries in civilization — -to the first stage of improvements upon a 
state of barter; and the argument is of the same kind with that 
which would attempt to persuade us to abandon the conveniences 
and luxuries of the civilized, for the scanty necessities and sim- 
pler modes of savage life. 

But the arguments in favor of an exclusive metallic currency 
for the use of a great commercial people, embracing as they 
do the destruction of the credit system, need no attempt at 
refutation. The subject might have merited discussion three 
centuries back, in the infancy of commerce, but is now too far 
behind the intelligence of the age, to meet with any favor from 
the more intelligent portion of community. 

All that is requisite to show the folly of that visionary and uto. 
pian scheme, is an acquaintance with the commercial state of 
the civilized world, and a knowledge of established and immuta- 
ble principles in political economy. 

That banks have been, at times, productive of some evils, 
cannot be denied ; but that they have also been, by the aid 
which they have given to commercial credit, one very efficient 
cause of rendering us the second commercial nation in the 
world, appears fully as evident. 

Before, then, we commence a warfare of extermination against 
all banks it may be profitable to inquire whether the evils complain- 
ed of may notj in a great measure, be avoided in future by bet- 
ter banking regulations, and by a salutary reformation, without 
the necessity of entire destruction. 

It would doubtless be better were our banks established upon 
a firmer metallic basis. This, may, in a measure, be effected by 
the prohibition of the issue of small bills, which would introduce 
an amount of specie equal to the amount of small bills with- 
drawn from circulation. The small exchanges between indi- 
viduals would then be made in specie, the great mass of the cir- 
culating medium would be less liable to sudden and excessive 

21* 



246 OF EXCHANGE. 

fluctuations, and merchants and others engaged in lai'ge com- 
mercial transactions, might still avail themselves of the advan 
tages afforded by banks. 

But, while banks may be established by the States upon diffe- 
rent systems, and under different regulations, it is evident that 
the community will entertain but little confidence in them. 
And, whatever system may be adopted, it is all-important to its 
success that the people should have confidence in its permanency, 
—that it should not be liable to sudden changes and innovations ; 
but, that the system, throughout the States, should be one and 
uniform. And until this confidence be gained, credit cannot re. 
vive ; for credit implies confidence — confidence in the perma- 
nency and stability, as well as in the present utilityj of the 
currency system which^ may be adopted. 

In relation to the subject of credit, so little understood by most 
people, I cannot forbear to quote the words of Mr. Say ;— 

" The expressions, credit is declining, credit is reviving, are 
common in the mouths of the generality, who are, for the most 
part, ignorant of the precise meaning of credit. It does not im- 
ply confidence in the government exclusively — -for the bulk of 
the community have no concern with government, in respect to 
their private affairs. Neither is it exclusively, applied to the 
mutual confidence of individuals — for a person in good repute 
and circumstances does not forfeit them all at once ; and ev«n 
in times of general distress, the forfeiture of individual character 
is by no means so universal as to justify the assertion, that cre- 
dit is at an end. It would rather seem to imply confidence in fu- 
ture events. 

" The temporary dread of taxation, arbitrary exaction,^ or vio- 
lence, will deter numbers from exposing their persons or their 
property ; undertakings, however promising and well-planned, 
become too hazardous ; new ones are altogether discouraged, 
old ones feel a diminution of profit ; merchants contract their 
operations ; and consumption in general falls off, in consequence 
of the decline and the uncertainty of individual revenue. There 



OF EXCHANGE. 247 

«an be no confidence in future events, either under an enterpris- 
ing, ambitious, or unjust government, or under one that is want- 
ing in strength, decision, or method. Credit, like crystallization, 
can only take place in a state of Quiescence " 



PART FOURTH 



CONSUMPTION OF WEALTH 



I. Of the nature and different kinds of Consumption, 

The ultimate end and design of the creation of 
value, is the gratification of desire. But, in answer- 
ing this end, the value is destroyed. Thus, flour is 
converted into bread ; its value as flour is destroyed, 
but it reappears in another form ; the bread is used 
for food, and its value as bread is gone for ever. This 
act, by which we annihilate a particular value, is call- 
ed consumption. 

Sometimes this consumption is followed by no fur- 
ther utility than the present gratification of desire, as 
in an exhibition of fireworks — the value of the article 
is destroyed in the gratification of the desire of amuse- 
ment, and no further utility can be derived from it. 



Of what does part fourth treat ? 

For what is value created— and how is it made to answer its end 1 



250 CONSUMPTION OF WEALTH. 

But, in the consumption of bread for the gratification 
of a desire necessary to support existence, its value 
reappears in renovated health and vigor. The former 
is called unproductive, the latter, productive consump- 
tion. 

By consumption, however, is not understood the 
destruction of material products only, but the destruc- 
tion of value, in whatever form that value exists ; for 
it may exist either in the form of labor or of capital. 
But all values that have been added by human indus- 
try, if once destroyed, cannot be destroyed a second 
time ; and whatever cannot lose its value, is not liable 
to consumption. 

But all products are consumed sooner or later ; 
either by design or by accident ; rapidly or gradually : 
for they are produced solely for the purpose of con- 
sumption. 

The farmer raises wheat for the purpose of destroy- 
ing its value in the gratification of desire. And the 
farmer may consume its value tvhen changed to the 
form of bread, or he may obtain from the merchant in 
exchange for it another value in the form of cloths 
and sugar, which he wishes to consume. And the 
merchant obtains the wheat for the purpose of con- 
suming it himself, or for the purpose of selling it to 
another who wishes to consume it. Thus, all values 
are designed for consumption. 



What is consumption, as here understood 1 
What ia unproductive, and what productive consumption ? 
By consumption do we understand the destruction of material producti 
only I 



CONSUMPTION OF WEALTH. 251 

But, we have said there are two kinds of consump. 
tion — productive and unproductive. 

In productive consumption, the value which is des- 
troyed in one form, reappears with increased amount 
in another form. Thus, the farmer consumes seed, 
dtensils, and labor, expecting that the produce of his 
farm will replace the values consumed and pay the 
interest of his capital, and also leave him a suitable 
recompense for his labor and skill. 

In the departments of operative industry, values are 
consumed for the purpose of changing their form, in 
order that they may be better adapted for consumption. 
Thus, the manufacturer consumes cotton, whose value 
reappears in the form of cloth. Here the object is an 
increase of value. But, if the value of the cloth be 
less than all the values consumed in its production, it 
has evidently been an unproductive consumption of 
value, and a loss to the manufacturer. 

But values are also consumed for the gratification 
of desire where no increase of value in any material 
product is expected. Thus, values are consumed for 
the gratifications of the senses — for intellectual grati- 
fication — and for social and moral pleasures. And 
these kinds of consumption may be either productive 
or unproductive ; for those gratifications which render 
a man better, wiser, and happier, must be considered 
as productive of value to him. 



What becomes of the value destroyed in productive consumption 1 
For what purposes are values consumed in the departments of operative 
industry 7 
When are values consumed without a design to increase their value 1 



M 



252 CONSUMPTION OF WEALTH. 

But, if their tendency be to render man corrupt, 
debased, and wretched, the values which have been 
consumed in the gratification have been unproduc- 
tiveiy consumed. 

But, that which is economy and productive con- 
sumption to one man, may perhaps be profusion and 
unproductive consumption to another, and must be 
determined by the fortune, condition, and wants of the 
individual. 

An expense that would render a man of moderate 
fortune wiser and happier, might be extravagance in 
a poor man, and, by depriving him of more important 
gratifications, render him wretched. 

And, so varied are the means and the circumstances 
of individuals, that the only practical rule which can 
be given for individual consumption is, " Be econom 
ical, wise, and prudent, in all things." 

And even economy itself is a relative term — the 
knowledge of our means, and the best mode of employ- 
ing them. It is equally distant from avarice and 
profusion* 

II. Of Public Expenditure. 

It now remains for us to advert for a moment to 
public consumption, or public expenditure. Our re- 
marks upon this subject will be short, for, after all, it 



When may this kind of consumption be productive— and when is it unpro* 
ductive 1 

Is it easy to establish rules of economy which will apply to all circuni- 
otances 1 

Wliat is economy 1 



/; CONSUMPTION OF WEALTH. 253 

will be found that there is a perfect analogy between 
the finances of an individual and those of a nation, and 
that the same principles of political economy should 
regulate the management of the aiSairs of both. 

Government must be supported, and in no other 
way can it be maintained than by means derived from 
the people. And, as government possesses nothing, 
its revenues are derived from, and its expenditure pro- 
vided for, by means of taxation. And its object being 
to provide for and promote the general welfare of the 
people, it should accomplish this object with the con- 
sumption of as little value as possible. 

The principles which regulate national consump- 
tion are, therefore, the same as those which apply to 
individuals. 

If useless and extravagant expenditure will impover- 
ish an individual, the same causes will impoverish a 
nation — public and private expenditure affect wealth 
in the same manner. 

Yet, some writers have maintained, that public wealth 
increases with the increase of public consumption, and 
that where taxes are imposed by government to be 
consumed in games and festivals, the nation loses 
nothing — for what is taken from the people in the 
form of taxes, is returned again by the expenditures 
of government. 

The argument is of the same kind, as if a robber 
should enter a merchant's house and take away his 



Is there any difference between the principles which should regulate pub- 
lic and those which should regulate private expenditure 1 

22 



254 CONSUMPTION OF WEALTH. 

money, and tell him he did him no injury, for the 
money would be employed in purchasing the commod- 
ities he dealt in. But in such a case, although the 
money be returned, the commodities are parted with 
without any equivalent. 

And the same with the taxes of a nation : if they 
are consumed by government in useless expenditure, 
there is so much value lost. For, although the nation 
receive back its money, it parts with commodities for 
which it receives no return. 

The subject of public expenditure is so plain, after 
a knowledge of the nature of wealth and the design of 
consumption, that it is not thought requisite to give 
it a further discussion. The application of principles 
already established — and of those which will readily 
suggest themselves — will in all cases, as far as reason 
can teach us, direct the manner and the extent of 
public consumption. 



How have some writers regarded public profusion— and how is the subject 
considered ? 
Is the subject of public expenditure a difficult one 1 



AN APPENDIX, 

CONTAINING 

A BRIEF ACCOUNT 

OF THE 
POWERS, DUTIES, AND SALARIES 

,0F 

NATIONAL, STATE, COUNTY, 

AND 

TOWN OFFICERS. 



ARTICLE IL 

APPENDIX. 



CHAPTER I. 

OF NATIONAL OFFICERS. 

The government of the United States is divided in- 
to three great departments — the Executive, the Legis- 
lative, and the Judicial, each having distinct duties to 
perform. 

SECTION I. 

OF THE EXECUTIVE DEPARTMENT. 

The executive officer of government is the President. 
The general duties annexed to the office of President 
have already been considered in a previous portion of 
this work; but as they are obviously too numerous 
and too various to be performed by one man, subordi- 
nate departments have been created, and the duties of 
their officers prescribed by Congress. 



Into what great departments is the government of the United States di • 
videdl 

Who is the executive officer of government, and what is said of his du- 
ties f 22* 



258 APPENDIX. 

The departments created are those of State, Trea. 

sury, War, Navy, Post-office, and Mint. 

I. Of the Department of State. 

The presiding officer of this department is called 
Secretary of State. His general duties are to conduct 
ail correspondence with foreign powers ; to keep the 
seal of the United States, and affix it to all civil com- 
missions signed by the President ; to preserve, publish, 
and distribute the acts and resolutions of Congress ; 
and to have the supervision of patents and copy- 
rights, &c. 

The Secretary is assisted in the duties of his office 
by clerks, messengers, watchmen, &;c. 

II. Of the Treasury Department. 

The object of this department is to manage the mo- 
neyed concerns of government. The general duties of 
the Secretary of the Treasury are, to prepare and sub- 
mit to the President or to Congress plans for the im- 
provement and management of the public revenue, 
and for the support of public credit; to superintend 
the collection and disbursement of the revenue ; and 
to report to the Senate or House of Representatives, 



What subordinate executive departments have been created 1 
W^ho if the presiding officer of the department of state, and what are his 
general duties 1 
What is the object of the treasury department 1 
What are the duties of the Secretary of the Treasury 1 



APPENDIX. 259 

when required by either, respecting all matters pertain- 
ing to his office. 

The Secretary is assisted in the business of his office 
by two comptrollers, five auditors, a treasurer, a regis- 
ter, and a commissioner of the land office. Each of 
these officers is charged with specific duties, and has 
under him a number of inferior officers. 

III. Of the War Department 

At the head of this department is the Secretary of 
War, who is to perform such duties as shall be intrust- 
ed to him by the President, agreeably to the Constitu- 
tion, relative to military commissions, the land forces, 
and warlike stores of the United States, or to such 
other matters respecting military affairs as the Presi- 
dent shall assign to such department ; or relative to 
the granting of lands to persons entitled thereto for 
military services rendered to the United States; or 
relative to Indian affairs. 

The WvTr department is divided into the following 
subdivisions, all under the general control and superin- 
tendence of the Secretary : — • 

1. War office. 2. Requisition bureau. 8. Pension 
bureau. 4. Indian bureau. 5. Bounty land office. 
6, Office of the general staff. 7. Adjutant-General's 
office. 8. Engineer's department. 9. Topographical 
bureau. 10. Ordnance department. 11. Quarter- 
Master's department. 12. Purchasing department. 



By whom is the Secretary assisted in the business of his office 1 
Who is at the head of the war department, and what are his duties 1 
Into what divisions is the war department divided ? 



260 APPENDIX. 

13. Pay department. 14. Subsistence department 
15. Medical department. 

IV. Of the Navy Department, 
The Secretary of the Navy has a general superin- 
tendence of the naval establishment, and executes such 
orders as he shall receive from the President relative 
to the procurement of naval stores and materials, and 
the construction, armament, equipment, and employ- 
ment of vessels of war, as well as all other matters 
connected with the naval establishment of the United 
States. 

The Secretary is assisted by eight clerks and two 
messengers. 

There is also a Board of Navy Commissioners, ap- 
pointed by the President, consisting of three officers 
of the navy. The board, under the superintendence 
of the Secretary, discharges all the ministerial duties 
of the department, and is assisted by six clerks, a 
draughtsman, messenger, and superintendent of build- 
ing. In addition to the above officers, there are at- 
tached to the department twelve navy agents, seven 
naval storekeepers, and eight naval constructors. 

V. Of the Post-office Department. 
The general post-office, established at the seat of 
government, is placed under the direction of a Post^ 

What are the duties and powers of the Secretary of the Navy 1 

By whom is he assisted 1 

Who compose the Board of Navy Commissioners, and what are their 
duties 1 

Who is at the head of the post-office department, arid what are his du 
£!es1 



APPENDIX. 261 

master-General. He establishes post-offices and ap- 
points postmasters on routes established by law. He 
provides for the carriage of the mail, and pays all ex- 
penses arising from the conveyance of the mail, the 
collection of the revenue of the department, and other 
expenditures. He prosecutes offences against the 
department, and renders a quarterly account of the 
receipts and expenditures of the Secretary of the Trea- 
sury. 

The expenditures of the post-office department are 
paid from its receipts in postage. Its funds, unlike 
those of the other departments, do not make a part of 
the general revenue of the country, but its receipts 
and expenditures are kept within itself. In this man- 
ner, as its funds have extended, new mail routes have 
been established, the mail greatly expedited on the old 
ones, and their frequency increased. 

The Postmaster-General is assisted by two assistants, 
an examiner, a register, solicitor, three book-keepers, 
and sixty-two clerks. 

The business of the office is divided into three divi- 
sions. 

The first assistant Postmaster- General has the super- 
intendence of the first division, in which are included 
the book-keeper's office, solicitor's office, pay office, 
examiner's office, and register's office. 

The second division is under the direction of the 



What use is made of the fands of the post office department ? 
By whom is the Postmaster-General assisted 1 
How is the business of his offiqp divided 1 



262 APPENDIX. 

second Assistant Postmaster-General. In this divi 
sion are the office of appointments and instructions, 
the dead-letter office, and the office of mail depreda- 
tions. 

The chief clerk is charged with the duties of the 
third division. In this division is the office of mail 
contracts. n 

VI. Of the Mint Department, 

The officers of the mint are a Director,, Chief Coin- 
er^ Assayer, Engraver, Melter and Hefner, and a 
Treasurer, and as many clerks and workmen as are 
necessary. The duty of the Director is to superintend 
and manage the business, and all the officers and per- 
sons employed in it. The Assayer assays or tests the 
quality of all metals which require it, and delivers 
them to the Chief Coiner. The Chief Coiner coins 
them in such quantities as the Director requires. The 
Engraver sinks and prepares the dies for the coin, 
with the proper devices and inscriptions. The Melter 
and Refiner takes charge of all copper and silver or 
gold bullion delivered out by the Treasurer after assay- 
ing, and reduces. the same into bars and ingots for the 
rolhng mills, and then delivers them to the Coiner or 
Treasurer, as the Director deems expedient. The 
Treasurer receives and gives receipts for all metals 
which may be lawfully brought to the mint to be 



What are the officers of the mint department, and what are their several 
duties 1 



APPENDIX. 263 

coined; and, for ascertaining their quality, he delivers 
from every parcel so received a number of grains to 
the Assayer, who assays such of them as require it. 



SECTION II. 

OF THE LEGISLATIVE DEPARTMENT. 

We have seen that all legislative power granted by 
the Constitution of the United States is vested in a 
Congress, which consists of a Senate and House of 
Representatives. 

The powers and duties of Senators and Representa- 
tives have been considered in a former part of this 
work. The organization of these bodies respects, 1st, 
their officers ; 2d, their committees ; and 3d, their rules. 

I. Their officers are the presiding officer, (in the 
House the Speaker, and in the Senate the Vice-Presi- 
dent,) the Secretary of the Senate and Clerk of the 
House of Representatives, their principal clerks and 
engrossing clerks, the Librarian, Sergeant-at-arms, the 
Door-keepers and Assistant Door-keepers of both 
houses, and the Chaplains. The general duties of the 
officers may be known by their titles. 

II. The chief Hbusiness of legislative bodies is done 
by their committees, to whom all matters requiring in- 
vestigation are first referred, and by whom a report is 



In what is the legislative power of the general government vested ? 

What does the organization of Congress Jiespect 1 

What are the officers of the two houses ? 

How la the chief business of legislative bodies done 



264 APPENDIX. 

made upon the subject, which report is the topic of 
consideration with the house. 

The principal committees in either house are, the 
committees on foreign relations, on commerce, on the 
judiciary, on military affairs, &;c. These are called 
standing committees, because committees on the same 
subject are appointed at every session. Besides these, 
there are select committees appointed for specific objects, 
and only for the particular occasion. Also, the whole 
house, at times, resolves itself into a committee called a 
committee of the whole. The object of this is to obtain 
greater freedom of debate. When in committee of the 
whole, a chairman is appointed in place of the Speak- 
er, and the regular rules of the house are set aside, and 
simply order is preserved, as in common deliberative 
assemblies. When the committee of the whole have 
finished their discussions, the Speaker resumes the 
chair, and the members may then vote upon the sub- 
ject. 

Committees in the House are appointed by the 
Speaker ; in the Senate, by ballot. In the House they 
consist of 5et)e?i members each ; in the Senate, of Jive. 

in. The rules of business, both for the Senate and 
the House, are substantially the same. 

At the beginning of a session the order of business is 
as follows : After Congress is organized, the President's 



What are the principal committees in ekch house ? 
What is the " committee of the whole," its object, &c. 1 
How are committees appointed in each house, and of how many members 
do they consist 1 

What is the order of business at the beginning of a session 1 



APPENDIX. a35 

message is received and read, with the accompanying 
documents ; then such parts as relate to foreign af- 
fairs, commerce, the judiciary, the military, &c., are 
referred to their appropriate committees, who examine 
the subjects committed to "them, and report such bills 
as they think necessary and proper. On these bills 
Congress decide, by accepting or rejecting them. 

The order of daily business is as follows : 1st. The 
journal of the preceding day is read ; 2d. Petitions are 
presented and disposed of; 3d. Reports from standing 
and select committees are called for and disposed of. 
To these subjects, and that of resolutions, only one 
hour in a day is allowed. Next, the order of the day 
is called for — which consists of unfinished business in 
regular order, and subjects particularly set apart for 
that day. 

The principal motions, and the order of their prece- 
dence, are as follows : — 1st. The motion to adjourn ; 
2d. To lay the subject on the table ; 3d. For the pre- 
vious question ; 4th. To postpone to a day certain ; 
5th. To commit or amend ; and, 6th. To postpone 
indefinitely. 

SECTION III. 

OF THE JUDICIAL DEPARTMENT. 

The judicial power of the United States has been 
previously examined. We shall here briefly enumerate 
the different Courts, and their officers. 



What is the order of daily business ? 

What are the principal motions, and what is their order of precedence t 

23 



■» 



266 APPENDIX. 

The Supreme Court of the United States consists of 
one Chief Justice and eight Associate Justices. It hold© 
annually, at the city of Washington, one session which 
commences on the second Monday in January, 

The Circuit Courts are composed of a Justice of the 
Supreme Court- and the District Judge of the district 
in which the Circuit Court is held. There are nine 
Circuit Districts, and in each two courts are annually 
holden. 

The United States are also divided into Judicial Dis- 
tricts, in each of which there is a District Court, con- 
sisting of one judge, called a District Judge. There 
are now upwards of thirty District Courts. 

Of the OJicers of the Courts, 

The officers of the United States Courts are Attor- 
neys and Counsellors, Clerks, Marshals, and Reporters. 

The Attorneys and Counsellors are persons learned 
in the law, who are employed by the litigant parties to 
conduct suits in the above courts. 

It is the duty of the Cleric of each court to enter and 
record, in a book kept for the purpose, all the orders, 
decrees, judgments, and proceedings of the court. 

The Marshal is the ministerial officer of the court, 



Of what is the Supreme Court composed 1 The Circuit Courts 1 

How many Circuit Districts are there ? 

Of what are the District Courts composed 1 

What are the officers of the United States Courts ? 

What are Attorneys and Counsellors 1 

What are the duties of the Clerk of each Court 1 

What is the Marshal 1 



a:ppbndix. 267 

and executes all lawful precepts directed to him. He 
has power to command all necessary assistance in the 
execution of his duty. Instead of a Marshal, the min- 
isterial officer of the State Courts is the Sheriff of the 
county. 

Reporters are persons appointed by the courts to re- 
port and publish their judicial decisions and opinions. 



CHAPTER II. 
OF STATE, COUNTY, AND TOWN OFFICERS. 

The Constitutions of the States are similar to each 
other, and, in form, nearly the same with the Constitu- 
tion of the United States. We shall therefore consider 
the form and manner of government, and the powers 
and duties of the officers in one State only. For this 
purpose we have selected the State o^ New-Yorh. 

State governments, like the national, are divided into 
three great departments, — Legislative, Executive, and 
Judicial. 



Who supply the places of Marshals in the State Courts ? 
W^hat are Reporters ? 

Do the Constitutions of the States differ materially from each other 
How are the State governments divided 1 



268 APPENDlSa 

SECTION I. 

OF STATE OFFICERS. 

I. Of Legislative Officers. 

The legislative officers are tbirty-two Senators aiid 
one hundred and twenty-eight Members of Assembly. 

Senators are chosen by the people, and by districts ; 
one Senator being chosen annually in each Senate 
District. Their term of office is four years. 

Members of Assembly are chosen annually, by the 
people. 

The powers and duties of Senators and Members of 
Assembly vary but little from those of Senators and 
Representatives in Congress ; with the exception that 
the latter have for their objects national concerns, the 
former municipal. In the mode of legislation there ia 
very little difference. 

II. Of Executive Officers. 

The executive officers are a Governor and Lieuten- 
ant-Governor, Secretaryof State, Comptroller, Treasur- 
er, Attorney-Genera], Surveyor-General, State Printer, 
Private Secretary for the Governor, and a Door-keeper 
of the executive chamber. 



What are the legislative officers of the State of New- fork ? 
How are the Senators chosen, and whaj, their term of office 1 
Members of Assembly 1 

Kow do the powers and duties of the members of the State Legislature dif- 
fer from those of the National Legislature 1 
Wbat are the executive officers of the State ? 



APPENDIX. 269 

Of the Governor, 

The executive power of the State is vested in a Gov^ 
ernor, who is chosen by the people, and holds his office 
for two years. 

To qualify a person for the office of Governor, he 
must be a native citizen of the United States, a free- 
holder, and have attained the age of thirty years, and 
have been five years a resident within the State. 

He is commander-in-chief of the militia and navy 
of the State ; he may convene the legislature (or Senate 
only) on important occasions; he shall communicate by 
message to the legislature, at every session, the condi- 
tion of the State, and recommend to them such matters 
as he shall deem expedient ; transact all necessary 
business with the officers of government ; expedite all 
such measures as shall be resolved upon by the legisla- 
ture, and take care that the laws be faithfully executed. 

The Governor has power to grant reprieves and 
pardons after conviction for all offences, except in 
cases of treason and impeachment. 

Of the Lieutenant-Governor. 

The Lieutenant-Governor is elected by the people, at 
the same time, and for the same term of service, as the 
Governor. He is President of the Senate ; and, in 
case of vacancy in the office of Governor, the powers 



In whom is the executive power of the State vested ? 

What are the qualifications for Governor 1 His term of office 1 What are 
his powers and duties ? 

How is the Lieutenant-Governor elected — his term of olfice — powers and 
duties? 23* 



270 APPENDIX. 

and duties of the Governor devolve upon the Lieutes 
ant-Governor. In case of the removal of the lattei 
the President of the Senate acts as Governor. 



Of the Secretary of State. 

The Secretary of State is appointed by the legis- 
lature, and holds his office three years, unless sooner 
removed by a concurrent resolution of the Senate and 
Assembly. 

It is the duty of the Secretary to keep the public 
deeds, papers, records, &c., of the State, except mort- 
gages belonging to the people of the State ; to attend 
at every session of the legislature, for the purpose of 
receiving bills which shall have become laws, and to 
distributethe printed laws and journals of each session 
to certain persons entitled by law to receive them ; to 
record such statements of county elections as he shall 
receive from the county clerks, and notify a meeting 
of the State canvassers, for the purpose of examining 
the returns of elections ; to record the certificates 
of the board of canvassers, and deliver copies of such 
to each person thereby declared to be elected, and a 
like copy to the Governor, and cause the same to be 
published in the public papers. 

He is, by right of office, one of the commissioners 
of the land office, one of the State canvassers, one of 
the commissioners of the canal fund, a member of the 



How is the Secretary of State appointed, and what is his term of office 1 
Waal s,z( ais powers and dutiyb? 



APPENDIX. 271 

canal board, one of the trustees of the State library, 
superintendent of common schools, and State sealer of 
weights and measures. 

Of the Comptroller, 

The Comptroller is appointed in the same manner 
as the Secretary of State, and holds his office for a 
like term, and is removable in the same manner. 

It is the duty of the Comptroller to superintend and 
manage the revenues of the State; to exhibit to the 
legislature, at its annual meeting, a statement of the 
funds, revenues, and expenditures of the State ; to 
suggest plans for the improvement and management 
of the public revenues ; to keep and state all accounts 
in which the State is interested, and superintend the 
collection of all moneys due to the state ; to examine 
the accounts of the debts and credits in the bank books 
kept by the Treasurer ; to draw warrants on the 
Treasurer for the payment of all moneys directed by 
law to be paid out of the treasury. 

He has power, also, to vote in behalf of the State at 
all elections of directors of banks, corporations, or 
joint-stock companies, at which the State is entitled 
to vote ; and all papers relating to the canals are kept 
in his office. 

He is, by right of office, one of the commissioners 
of the land office, one of the commissioners of the 



How is the comptroller appointed ? His term of ofSce 1 
What are his powers and duties 1 ^ 



272 APPENDIX. 

canal fund, a member of the canal board, a trustee of 
the State library, and one of the State canvassers. 

Of the Treasurer, 

The Treasurer is appointed annually by the legis- 
lature. Within ten days after his election, he gives 
a bond to the State, in the sum of fifty thousand dol- 
lars, that he will faithfully execute the duties of his 
office. 

He receives all moneys paid into the trea^ry, and 
pays all warrants drawn by the Comptroller on the 
treasury ; and no moneys are paid out of the treasury 
except on a warrant of the Comptroller. He makes 
an annual report to the legislature of the business of 
his office, and his accounts are annually examined by 
a committee appointed by the legislature for that 
purpose. 

Of the Attarney-General. 

The Attorney-General is appointed by the legislature, 
and holds his office for three years. 

It is his duty to prosecute and defend all suits in 
which the State is interested, and, at the request of 
the Governor, Secretary of State, Comptroller, Treas- 



How is the Treasurer appointed 1 

What is his term of office 1 

What are his duties 1 

How is the Attorney-General appointed 1 

What is his term of office "? 

What are his powers and duties ? 



APPENDIX. 273 

tirer, or Siirveyor-GeDera], to prosecute such persons 
as are charged by either of those officers with the 
commission of an indictable offence, in violation of 
the laws which such officer is required to execute, or 
in relation to matters connected with his department. 

All moneys received by the Attorney-General for 
debts due or penalties forfeited to the State, are paid 
by him into the treasury. 

He cannot act as attorney in any private suit. He 
keeps a register of the business of his office, and delivers 
the same into the hands of his successor. 

He is, by right of office, one of the commissioners 
of the land office, of the canal fund, and canal board, 
and one of the trustees of the State library. 

Of the Surveyor 'General. 

The Surveyor -Generally appointed by the legislature, 
and holds his office for three years. 

It is his duty to superintend surveys and sales of 
lands belonging to the State ; to retain in his office a 
map of the State, and to delineate thereon the bounds 
of all towns or counties erected or altered by the legis- 
lature ; and whenever such bounds shall be so described 
that they cannot be delineated by the Surveyor-General 
on the map of the State, he shall direct the Supervisor 



How is the Surveyor-General appointed I 

Wii at is his term of office ? 

What are his duties 1 

To whom does he account for moneys received 1 



274 APPENDIX. 

of such town to cause such survey to be made, and to 
transmit the same to the Surveyor-General's office. 

Whenever a dispute shall arise between the officers 
of two or more towns respecting the bounds of the 
same, the Surveyor-General, if necessary, shall direct a 
survey to be made, and shall determine such dispute. 

He accounts to the Comptroller for all moneys re- 
ceived by him in behalf of the State, or from the 
treasury. 

He is, by right of office, one of the commissioners 
of the land office, of the canal fund, the canal board, 
and is one of the State canvassers. 

Of the State Printer. 

The State Printer is appointed by the legislature, 
and holds his office during their pleasure. 

It is his duty to print, during each session of the 
legislature, a specified number of copies of the journals 
of each House ; a portion of which is to be delivered 
to the clerks of the Senate and Assembly, for the use 
of their respective Houses, and the remainder to the 
Secretary of State, as soon as may be after the close 
of each session. 

He also prints such number of copies of all docu- 
ments as either House may order. 

He prints a State paper, as often, at least, as semi- 



How is the State Printer appointed ' 
How long does he hold his office 1 
What are his duties 1 



APPENDIX. f75 

weekly, and publishes in such paper copies of laws, 
when directed by the Secretary of State, and also such 
notices as are required by law. 

He also prints, and delivers bound to the Secretary, 
as many volumes of the laws, documents, &;c., of each 
session, as the Secretary may direct. 

Of the (xovernor^s Private Secretary, and the Door- 
keeper of the Executive Chamber, 

They are appointed by the Governor, and hold their 
respective offices during his pleasure. Their duties 
are fev/, and are well enough expressed by their titles. 



Besides the executive officers before mentioned, there 
is another numerous class, calledi administrative officers. 
We will mention a few only of the principal ones. 

There are four Canal Commissioners, appointed by 
the legislature, who constitute a canal board, and have 
the care and superintendence of the State canals. 

There are two Canal Appraisers, appointed by the 
Governor and Senate, who appraise the damages sus- 
tained by individuals whose lands and property have 
been appropriated to the use of canals. 

Superintendents of Canal Repairs are appointed by- 



How are the GoA^smor's Private Secretary and Door-keeper of the 
Jive chamber appoiuted 1 

What other class of officers is there 1 
Mention the principal ones, and their dutiea 



276» APPENDIX. 

the canal board, who superintend the repairs on the 
sections over which they are appointed. 
' Collectors of Canal Tolls are also appointed by the 
canal board. 

There is a Mayor in each city of the State, appoint- 
ed annually by the common councils of the respective 
cities, (except in the city of New-York, where the 
Mayor is now chosen by the electors^) 

There are three Banh Commissioners appointed to 
examine the affairs of such banks as are made subject 
to their power, and to ascertain their actual condition, 
and their ability to fulfil their engagements. 

III. Of Judicial Officers. 

We shall simply enumerate the different courts of 
the State, and a few of the powers and duties of their 
officers. 

1st. The President of the Senate, the Senators, the 
Chancellor, and the Justices of the Supreme Court of 
the State, constitute a Court for the Trial of Impeach- 
ments and the Correction of Errors. The mode of 
impeachment and trial by this court is similar to that 
in the national legislature. This court is also the ul- 
timate tribunal for the correction of errors that happen 
in other courts of the State. 

2d. There is a Court of Chancery, held by the Chan- 



Who compose the Court for the Tiial of Impeachments and the Correction 
of Errors 1 
What is said of the mode of impeachment ? 
By whom is the Court of Chancery- heldt 



APPENDIX. 277 

cellor, the jurisdiction of which is very extensive, and 
difficult to be defined. It takes cognizance of various 
cases o? fraud, trust, and accident; the specific per- 
formance of agreements ; the settlement of wills, de- 
vises, legacies, &c. ; and of many other cases in which 
courts of law afford no remedy. Chancery powers, 
in certain cases, are given to every Circuit Judge with- 
in the limits of his circuit. 

There is a Supreme Court, the powers of which are 
vested in the Chief Justice and two Associate Justices, 
any two of whom may hold the court. The jurisdic- 
tion of this court is very expensive. It has power to 
command magistrates and all civil officers to do their 
duty ; it reviews and corrects the decisions of the in- 
ferior courts, and it also has jurisdiction of civil and 
criminal cases. The court holds four terms in each 
year : one in the city of New- York, two in Albany, 
and one in Utica. 

4th. There are eight Circuit Courts in the State ; 
there being one Circuit Court in each senatorial dis- 
trict. In each district there is a Circuit Judge, who 
appoints the times and places of holding circuit courts 
within his district. These courts try issues of fact 
joined in cases brought in the Supreme Court, o\ 
other issues properly sent to the circuit to be tried by 



Of what cases doss it take cognizance ? 

Of wliom is the Supreme Court composed 1 

What are some of its powers 1 

How many terms does it hold annually— and where 1 

How many Circuit Courts are there in the State 1 

What cases are tried by tliis court — and how tried 1 

24 



278 APPENDIX. 

jury. The trials of causes in these courts are had 
by jury. 

5th. There are two Courts of Oyer and Terminer 
held in each year in every county in the State. In 
most of the counties they are held by a Circuit Judge 
or a Justice of the Supreme Court, together with at 
least two Judges of the county courts of the county. 
This court has power to enquire of, by the grand jury, 
and try all crimes and misdemeanors committed or 
triable in the county where it is held, and to deliver 
the jail of the countj^, according to law, of ail prison- 
ers therein. » 

6 th. Courts of Common Pleas are held in each 
county, except in New-York, by the Judges of the 
county courts, at such times as are specified by sta- 
tute. The general powers of these courts are, to try 
all cases and matters at common law of every kind, 
with some few exceptions and limitations specified by 
statute. 

7th. Courts of General Sessions ms-j he hoi den by 
any three Judges of the county courts in every county 
of the State, except in New- York. These courts have 
power to try and determine all crimes and misdemean- 
ors, except those which are punishable with death or 
imprisonment in the state prison for life. 

8th. Courts of Special Sessions are held in the seve- 



Where and by whom are Courts of Common Pleas held ? 

What are the general powers of these courts 1 

^Tiere and by whom are Courts of General Sessions held "? 

What are their powers ? 

Where and by whom aro Courts of Special Sessions held 1 



APPE-S'DIX. 279 

ral counties in the State, except New-York, by any 
three Justices of the county, or by two Justices and a 
Judge of the county courts. These courts are held at 
such times as offences properly triable by them are 
complained of before them. They have jurisdiction 
of certain offences enumerated by law, the chief of 
which are petit larcency, (or theft,) assault and battery, 
charges for cruelly treating animals, for wilful tres- 
passes, dec, and a few other minor offences. The 
accused may demand and have a trial by jury, in all 
cases, when tried by the Court of Special Sessions ; or, 
if he choose, he may be biound over to be tried by the 
higher courts of the county. 

9th. Every Justice of the Peace may, in the town 
for which he is elected, hold a court for the trial of 
certain civil actions specified by law. But a Justice 
can in no contested suit render judgment for a sum ex- 
ceeding fifty dollars and costs of suit ; but, upon con- 
fession of a party, he may render judgment to the 
amount of two hundred and fifty dollars. 



SECTION II. 

OF COUNTY OFFICERS. 

The principal civil officers in the counties of this 
State, are the following : Sheriff, Coroner, District At- 
torney, Judges of the County Courts, County Clerk, 

Over what offences have they jurisdiction 1 

What is said of courts held by Justices of the Peace ■? 

What is the extent of their jurisdiction ? 

What are the principal civil officers in each county of the State 1 



280 APPENDIX. 

Surrogate; Superintendents of the Poor, County Trea- ' 
surer, Board of Supervisors, Commissioners of Loans, 
County Sealer, and Inspector of Commodities. 

Of the Sheriff. 

There is one Sheriff in each county in the State, 
who is chosen hy the electors of his county once in 
every three years. Before he enters upon the duties 
of his office, he is required to execute a bond to the 
people of the State for the faithful performance of his 
duties. 

He is the principal consei^ator of the public peace 
— the ministerial officer of the courts of his county ; 
he executes all writs and legal executions directed to 
him from the courts of record of the State; he gives 
notice of elections held in his county ; he has the cus- 
tody of the jails and prisons in the county, and the 
prisoners in the same, and appoints keepers of such 
jails and prisons. He may appoint an under-sheriff, 
and so many deputies as he thinks proper. 

In case of a vacancy in the offices of Sheriff and 
under-sheriff, the first Judge of the county designates 
one of the Coroners to fill the office of Sheriff. 

Of Coroners. 

There are four Coroners for each county in the 
State, who are chosen by the people, and who hold their 



How is the Sheriff chosen — and what is his term of office 1 
What are his powers and duties 7 

How many Coroners are there in each county — how chosen — and what 
tlieir term of office "? 



APPENDIX. 281 

office for three years. But in the city of New-York 
there is only one Coroner. 

The principal duty of Coroners is to investigate, by 
jury, cases of sudden death or severe injury. The jury, 
after an examination of the facts and circumstances 
of the case, deliver to the Coroner their inquisition in 
writing, in which they certify how, where, and when, 
the person dead or wounded became so ; who such per- 
son was, and who was guilty of the act ; together with 
the circumstances attending the transaction. 

If either murder, manslaughter, or assault and bat- 
tery has been committed, process is issued for the ap- 
prehension of the person charged with the'offence, and 
the inquisition found by the jury is returned to the 
next criminal court of the county. 

Of the District Attorney, 

There is a District Attorney for each county in the 
State, who is appointed by the Judges of the county^ 
and holds his office for three years. His principal 
duties are, to conduct all prosecutions at the Courts of 
Oyer and Terminer and General Sessions. He files 
in the office of the County Treasurer an account of all 
moneys received by him by virtue of his office, and 
pays the same to the Treasurer. 



What are their powers and duties 1 
How is the District Attorney appointed/? 
What are his duties 1 

24* 



282 ' APPENDIX. 

Of the Judges of the County Courts, 

There are a Fi7'st Judge and four side Judges of the 
county courts in each county in the State, (except 
New-York.) who are appointed by the Governor, with 
the consent of the Senate, and hold their offices during 
five years. They hold Courts of Common Pleas and 
General Sessions, and assist in holding Courts of Oyer 
and Terminer in their several counties. Their various 
duties are too numerous to be detailed here. 



Of the County Clerk, 

There is one Cleric for each county, who is chosen 
by the electors, and holds his office for three years. It 
is the duty of the County Clerk to keep and arrange 
all books, records, deeds, parchments, maps, &c., that 
are now or may be deposited in his office, and to pro- 
vide books for the recording of deeds, mortgages, or 
other conveyances acknowledged or proved according 
to law; to inform the Governor of all persons appoint- 
ed to offices in the county, and also of all vacancies 
in civil offices, and to report to the Comptroller the 
names of all the religious societies in the county. 



How many judges of the county courts are there in each county ? 

How appointed—and what their term of office 1 

What courts do they hold t 

How is the County Clerk chosen— and what is his term of ofiicel 

W5iat are his duties 1 



APPENDIX. 283 

Of the Surrogate, 

There is one Surrogate for each county, appointed 
by the Governor and Senate, who holds his office for 
"four years. He gives a bond to the people of the 
State for the faithful performance of the duties of his 
office, approved by the Clerk of the county. 

The Surrogate has power to take the proof of wills 
of real and personal property ; to grant letters testa- 
mentary, and of administration ; to direct and control 
the conduct, and to settle the accounts of executors 
and administrators ; to enforce the payment of debts 
and legacies, and the distribution of the estate of in- 
testates ; to order the sale and disposition of the real 
estate of deceased persons ; to appoint guardians for 
minors ; to remove them, and to direct and Control 
their conduct, and settle their accounts ; and to cause 
the admeasurement of dower to widows. 

Of the Superintendence of the Poor 

They are appointed by the Board of Supervisors of 
their respective counties, (in number not less than 
three, nor more than five,) and hold their office for 
one year. They have the general superintendence 
and care of the county poor ; but the regulations made 



By whom is the Surrogate appointed— and what is his term of office 1 
What are his powers and duties ? 

How many Superintendents of the Poor are there in each county? How 
appointed — and what their term of office 1 
What are their powers and duties 1 



284 APPENDIX. 

by them for the relief and support of the poor, require 
the sanction of a majority of the judges of the county 
courts. 

They draw on the County Treasurer for all neces- 
sary expenses incurred in the discharge of their duties, 
and account for the same to the Board of Supervisors. 
They make an annual report to the Secretary of State. 

Of the County Treasurer. 

The County Treasurer is appointed by the Board 
of Supervisors, and holds his otiice during their plea- 
sure. He gives to them such bond as they shall 
direct, for the faithful execution of the duties of his 
office. He receives all moneys belonging to the 
county, and applies the same according to law; keeps 
an account of his receipts and expenditures ; trans- 
mits to the Comptroller a statement of all moneys 
received by him for penalties, and pays the amount to 
the Treasurer of the State, deducting his compensa- 
tion therefrom ; and exhibits to the Board of Super- 
visors his books and accounts, to be audited arid allow- 
ed by them. 

Of the Board of Supervsiors. 

One Supervisor is chosen annually in each town, by 
the electors thereof. 



Bywhom is the County Treasurer appointed — and what his term of office 1 
What are his duties ? 
Who compose the Board of Supervisors 1 



APPENDIX. 285 

The Supervisors of the several towns meet annually 
in their respective counties, and at their annual or 
adjourned meetings have power to make such orders 
concerning the corporate property of the county, as 
they may deem expedient ; to settle all accounts charge- 
able against the county, and direct the raising of such 
sums as may be necessary to defray the same ; to 
cause the court house and jail of the county to be re- 
paired at the expense of the county ; and to perform 
all other duties that may be enjoined on them by any 
law of the State. 

The Board, except in some special cases where 
counties are excepted, also audits accounts of town 
officers and other persons. 

Of Commissioners of Loans. 

Commissioners of Loans are appointed under " An 
act authorizing the loaning of moneys belonging to 
the State," by the Governor, with the consent of the 
State, and hold their office for two years. They give 
bonds, with sufficient security, to the people of the 
State, for the faithful performance of the duties of 
their office. 

They receive and keep account of all moneys pay- 
able upon mortgages under their charge ; exhibit to 
the Board of Supervisors of their respective counties 



What are the powers and duties of the Board 7 

By whom are the Commissioners of Loans appointed 1 What are their 
duties 1 



286 



APPENDIX. 



all mortgages taken by them or their predecessors in 
office, for moneys loaned pursuant to law, together 
with their books, minutes, &c. ; and keep their books 
of mortgages in the Clerk's office of the respective 
counties for which they were appointed. 

Of the County Sealer. 

There -is a County Sealer for each county in the 
State, who is appointed by the Board of Supervisors, 
and holds his office during their pleasure. He re- 
ceives from the State Sealer, and keeps in his office, 
copies of the original standards of weights and meas- 
ures established by law. He also furnishes the several 
Town Sealers in the county copies of these original 
standards. 

All things sold or agreed for, are, in law, construed 
to be made in reference to these standards. 

Of Inspectors of Commodities. 

Inspectors of Commodities are- appointed by the 
Governor and Senate, wherever they are thought 
necessary, and hold their offices during two years. 
Their duty is, to inspect all articles that are by law 
subject to their inspection, and to decide if they are 
of the standard quality. 



By whom is the County Sealer appointed ? What are his duties 1 

By whom aro Inspectors of Commodities appointed— and what are theif 

duties 1 



APPE>^DIX. 287 

Thus, the purchaser is insured through the Inspector 
that the article he buys is sound and merchantable. 

SECTION II. 

OF TOWN OFFICERS. 

All town officers (except Justices of the Peace) are 
chosen annually. They consist of a supervisor, a 
town clerk, assessors, justices of the peace, a collector, 
overseers of the poor, commissioners of highways, com- 
missioners of common schools, inspectors of common 
schools, constables, a town sealer, overseers of high- 
ways, pound-masters, fence-viewers, commissioners of 
excise, board of auditors of town accounts, and com- 
missioners of deeds. 

Of the Supervisor. 

It is the duty of the Supervisor of each town to 
receive and pay over all moneys raised therein for 
defraying town charges, except those raised for the 
support of highways and bridges, of common schools, 
and of the poor ; to prosecute for all penalties of fifty 
dollars, or under, given by law to such town for its 
use, and for which no other officer is specially directed 
to prosecute ; to keep an account of the receipt and 
expenditure of all moneys which shall come into his 
hands by virtue of his office ; to account with the 



What are the Tov/n Officers of each town ? How are they chosen 



288 APPENDIX. 

Justices of the Peace and Town Clerk for the disburse- 
ment of all moneys received by him ; to attend all 
annual and adjourned meetings of the Board of Super- 
visors of the county ; to lay before them all accounts 
that may be presented to him against the town ; and 
to cause a survey of the town to be made when required 
by the Surveyor-General of the State. 

He is one of the inspectors of elections in the town, 
and is chairman of the board. 

Of the Town Clerk, 

It is the duty of the Town Clerk to keep the records, 
books, and papers of the town ; to record the minutes 
of the proceedings of town meetings ; to deliver to the 
Supervisor copies of all entries of votes for raising 
money ; and to return to the County Clerk the names 
of Constables elected in the town. 

Of Assessors, 

The number of Assesso7's in each town is not less 
than three, nor more than five. It is their duty to 
estimate the value of all real and personal property 
owned in the town, in order to a just apportionment, 
among the citizens, of the tax to which the town may 
be subjected. 



What are the duties of the Supervisor 1 

What are the duties of the Town Clerk ? 

What is the number of Assessors in each town— and what are their 

duties? 



APPENDIX. 289 

Of Justices of the Peace, 

One Justice of the Peace is chosen annually in each 
town, and holds his office during four years. They hold 
courts for the trial of certain civil actions ; they pre- 
side at and preserve order at town meetings ; they are 
authorized to cause every person charged with the 
commission of a crime, to be brought before them for 
examination ; they have power to administer any 
oath required by law to be taken or administered ; 
and they also impose fines for certain offences describ- 
ed by statute. * 

Of the Collector, 

There is one Collector for each town. His princi- 
pal duty is to collect the taxes according to such tax 
list and warrant as the Board of Supervisors shall de- 
liver to him and to deliver to the County Treasurer a 
list of uncollected taxes. 

Of Overseers of the Poor, 

There are two for each town. They have the su- 
perintendence of the poor of the town, and their duties 
are defined by statute. In some counties, the poor are 
supported by a county tax ; in others, each town sup- 
ports its own poor. 



What are the duties of Justices of the Peace 1 
What are the duties of the Collector t 
Of Overseers of the Poor ? Their number 1 
25 



290 APPENDIX. 

Of Commissioners of Highways. 

There are three for each town. It is their duty to 
have the care of the highways and bridges in their re- 
spective towns ; to regulate the roads, and alter such 
as they may deem inconvenient ; to divide the town 
into road districts ; to lay out such new roads, and 
discontinue such old roads, as shall appear to them, on 
the oath of twelve freeholders, to be expedient ; to de- 
liver to the Supervisor a statement of the improvements 
necessary on roads and bridges, together with the 
probable estimate thereof; and to cause milestones to 
be erected on the post-roads, and such other public 
roads as they may think proper. 

Of Commissioners of Common Schools, 

There are three for each town. They are inspectors 
of common schools— they divide the town into school 
districts— they receive and apportion all moneys for 
the use of schools in the town— and report annually to 
the county clerk./ 

Of Inspectors of Common Schools, 

There are three for each town. It is their duty to 
examine persons offering themselves as candidates for 
common-school-teachers of their town, and, if they are 



Of Commissioners of Highways "? Their number 1 
What is the number and what are the duties of Commissioners of Common 
Schools'? 
Of Inspectors of Common Schools, and their number 1 



APPENDIX. 291 

duly qualified, to give them a certificate to that efiect. 
The Inspectors are also required to visit and examine, 
at least once a year, all the common schools of their 
town. 

Of Constables, 

They cannot exceed five for each town, except in 
certain cases provided by statute. They are conser- 
vators of the peace — the ministerial officers of Jus- 
tices Courts, &c., and their duties, although numerous, 
are similar to those of the Sheriff of the county. 

Of the Town Sealer. 

There is one for each town. He receives from the 
County Sealer copies of the original standards of 
weights and measures, and these are compared, once in 
tl.ree years, with the copies deposited in the office of 
tiic County Sealer. 

The Town Sealer compares all weights and measures 
brought to him for that purpose, with the copies of the 
standards in his possession ; and when these are made 
to conform to the standard, he seals and marks them, 
for which he is entitled to certain fees, allowed by law. 

Of Overseers of Highways. 

Their number is equal to the number of road districts 
in each town. It is their duty to repair and keep in 



Of Constables, and their number 1 

What are the duties of the Town Sealer 1 

Of Overseers of Highways— and their number 1 



292 APPENDIX. 

order the highways within their respective districts— 
to warn all persons assessed to work on the highways, 
to come and work thereon— and to execute all lawful 
orders of the Commissioners of Highways. 

Of Pound-Masters e 

So many of these are chosen as the electors may de- 
terminej and in many towns they are wholly discon- 
tinued. Where they are chosen — -beasts doing dam- 
age, or running at liberty contrary to law, may be de- 
livered to them, and, unless sooner discharged, kept six 
days, and then sold to pay the damages, &;c. ; and the 
surplus (if any) is paid to the owner of the beasts. But 
if no owner appear within one year, the surplus is paid 
to the Overseers of the Poor, 

Of Fence-Viewers* 

The Assessors and Commissioners of Highways of 
each town are, by right of their o^cq, fence-viewers. 

When disputes arise between two or more owners of 
adjoining lands, concerning the just proportion of divi- 
sion fences to be made and maintained by them, any 
two or more Fence-Viewers may be chosen by the par- 
ties to decide the dispute ; and their decision is final. 
Besides, any two Fence-Viewers have power to ap- 
praise damages done by beasts, when applied to for that 
purpose. 



What are the duties of Pound-Masters— and their number 1 
Of Fence-Viewers I 



APPENDIX. 293 

Of Commissioners of Excise. 

The Supervisor and Justices of the Peace, are Com- 
missioners of Excise for their town, any three of whom 
form the board. They have power to grant to keepers 
of inns and taverns in their towns, licences to sell 
strong and spirituous liquors and wines to be drank in 
their respective houses ; and to license resident grocers 
to sell such liquors and wines, in quantities less than 
five gallons, but not to be drank on their premises. 
The Commissioners determine the sums to be paid for 
such licenses — but they cannot be less than five nor 
more than thirty dollars ; and they expire in one year. 
Persons not so licensed, are subject to penalties in case 
they sell. 

Of the Board of Auditors of Town Accounts., 

The hoard is composed of the Supervisor and Town 
Clerk, together with the Justices of the town, or any 
two of the Justices. 

The board examines the accounts of the Overseers 
of the Poor, of the Commissioners of Common Schools, 
and the Commissioners of Highways, &;c., of their re- 
spective towns, for moneys received and disbursed by 
them in virtue of their offices. 

The accounts thus audited are delivered to the Town 
Clerk, to be kept by him for inspection by any of the 



Who are Commissioners of Excise 1 
What are their powers and duties ? 
Who compose the Board of Auditors of town accounts 1 



294 APPENDIX. • 

inhabitants of the town. The accounts of the Super- 
visor are examined and audited by the Justices ana 
Town Clerk. 

Of Commissioners of Deeds. 

Their number, in each town, is determined by the 
Judges of the county courts, and they are appointed by 
the Judges and Board of Supervisors of each county. 

They have power to take the proof and acknowledg- 
ment of conveyances of real estate, and the discharge 
of mortgages; to take acknowledgment of bail in ac- 
tions in the Supreme Court, and in actions in the Court 
of Common Pleas of the county for which they are ap- 
pointed^ and to take acknowledgment of satisfaction 
of judgments in the Supreme Court, and in the Court 
of Common Pleas of the county for which they are ap- 
pointed. After taking the acknowledgment of any 
conveyance, the Commissioner endorses a certificate 
thereof, signed by him on the conveyance. 



By whom are the accounts of the Supervisor examined and audited 1 
By whom are Commissioners of Deeds appointed ? 
What are their powers and duties 1 



-.Jfs,, 



THE SALARIES 

OF NATIONAL, STATE, COUNTY, AND TOWN 
OFFICERS. 



I. NATIONAL OFFICERS. 



President of the United States 
Vice-President of the United States 



5.000 



Department of State. 

Secretary of State 6,000 

Chief Clerk . . . . . . , . 2,000 

Commissioner of Patent Office .... 3,000 

Treasury Department, ^^.^^ 

Secretary of the Treasury 6,000 

Chief Clerk 2,000 

First Comptroller ....... 3,500 

Chief Clerk ....... 1,700 

Second Comptroller ...... 3,000 

Chief Clerk 1,700 

Third Comptroller . . . . . , 3,000 

Chief Clerk . . . . . . . 1,700 

Fourth Comptroller 3,000 

Chief Clerk 1,700 

Fifth Comptroller 3,000 

Chief Clerk 1,700 

Solicitor of the Treasury 3,500 

Chief Clerk . 1,150 

Treasurer 3,000 

Chief Clerk 1,700 



296 



APPENMX, 



Register 
Chief Clerk 



$3,000 
1,700 



General Land-Office. 



Commissioner 

Solicitor .... 

Principal Clerk of Public Lands 
Principal Clerk of Private Claims 
Principal Clerk of Surveys 
Recorder .... 

Secretary . . . ^ . 



3,000 
2,000 
1,800 
1,800 
1,800 
1,500 
1,500 



War Department. 

Secretary of War , . . « . 

Chief Clerk in the Secretary's Office 
Clerk of the Requisition Bureau 
Principal Clerk of the Bounty Land Office 
Commissioner of Indian Affiiirs 

Chief Clerk .,.-.. 

Commissioner of the Pension Office 

Chief Clerk ...... 

Chief Clerk of the Engineer Department 
Chief Clerk of the Topographical Bureau 
Chief Clerk of the Ordnance Department 
Chief Clerk of the Quartermaster's Department 
Commissary-General of the Purchasing Department 

Chief Clerk 

Clerk of the Clothing Bureau . 
Paymaster-General of the Pay Department 

Chief Clerk ..... 

Chief Clerk of the Subsistence Department 
Surgeon-General of the Medical Department 

Chief Clerk . . . . 



6,000 
2,000 
1,600 
1,400 
3,000 
1,600 
2,500 
1,600 
1,150 

800 
1,150 
1,150 
3,000 
1,700 

700 
2,500 
1,700 
1,350 
2,500 
1.150 



APPENDIX. 



297 



Navy Department, 

Secretary of th* Navy 

Chief Clerk 
Three Naval Commissioners, each 

A Secretary 

A Chief Clerk . 



^ $6,000 
2,000 
3,500 
2,000 
1,600 



General Post-Office Department. 



Postmaster-General 


6,000 


Auditor 


3,000 


Three Assistant Postmaster-Generals, each 


. 2,500 


Mint Department. 




Director . . . . , . . 


2,000 


Treasurer ...... 


1,200 


Chief Coiner . . . . 


. 1,500 


Assayer ....... 


1,500 


Melter and Refiner 


. 1,500 


Assistant Assayer ...... 


1,000 


Engraver 


. 1,200 



Legislative Department. 

Senators, Representatives, and Delegates to the national le- 
gislature, receive eight dollars for every day's attendance, and 
eight dollars for every twenty miles travel, by the most usual 
road, from their place of residence to the seat of Congress, both 
in going to and returning from the session. And if detained on 
the journey by sickness, or if unable to attend after their arrival, 
they are entitled to the same daily allowance. 

The President of the Senate pro tempore, during the absence 
of the Vice-President, and the Speaker of the House of Repre- 
sentatives, receive, in addition to their compensation as mem. 



298 APPENDIX. 

bers, eight dollars for every day's attendance on their respective 
houses. 

The fallowing are the salaries of the officers of the two 
houses : — 

•Secretary of the Senate . . • . . $3,000 

Clerk of the House of Representatives * . 3,000 

Principal Clerks ...*.. 1,800 *.. 

Engrossing Clerks ...... 1,500 

Librarian of the Library of Congress . . . - 1,500 - 

Sergeant-at-Arms, and the Doorkeepers of the Senate and 

House of Representatives, each . . . 1,500 

Assistant Door-keepers 1,450 

Chaplains, each 500 

Judicial Department. 

Chief-Justice 5,000 

Eight Associate Justices, each .... 4,500 

Attorney-General ...... 4,000 

Reporter 1,000 

Cl'erk and Marshal . . ' . fees of office. 



IL SALARIES OF STATE OFFICERS, &-c., OF NEW- 
YORK. 

The pay of a Member of either house of the Legislature, is 
three dollars per day. 

Governor . - 4,000 

Lieutenant-Governor, (pay double that of a Senator, and 
six dollars per day during the session.) 

Comptroller 2,500 

First Deputy Comptroller , . '. . . . 1,500 

Second Deputy^ Comptroller ..... 1 ,500 



.^' 



APPENDIX. 



299 



rreasurer 
Deputy Treasurer 
Secretary of State 
Deputy Secretary 
Surveyor-General 
Attorney-General 
Governor's Private Secretary 
Canal Commissioners, each 



Judicial Department 



Chief-Justice of the Supreme Court . . . 2,500 

Two Associate Justices, each .... 2,500 

Reporter , 500 

Eight Judges of the Circuit Courts, each . . 1,600 

Chancellor of the Court or Chancery . . . 2,500 

Register and Assistant Register . ,' . , fees. 

Reporter 500 

The salaries of County and Town Officers, are their fees of 
office. 



^1,500 
1,300 
1,750 
1,500 

800 
1,000 

600 
2,000 



m 



